China - HSBC/Markit Manufacturing PMI for May, 49.2

  • expected 49.2, prior was 48.9, flash reading was 49.1

3rd consecutive month of contraction

The official PMIs were out earlier: China manufacturing PMI: 50.2 (vs. 50.3 expected) & Non manufacturing PMI: 53.2 (prior 53.4)

  • Official PMI and HSBC PMI painting contradictory pictures. Note, they are different surveys, with different firms participating. Pick the one you like, I suppose

Annabel Fiddes, Economist at Markit:

  • "The headline PMI signalled a further deterioration in the health of China's manufacturing sector in May
  • A solid fall in new export work contributed to fewer new orders, which in turn led to the first contraction of output in 2015 so far
  • "Furthermore, sustained job cuts, ongoing destocking activities and reduced purchasing activity all suggest that the sector may remain in contractionary territory as we head into mid-year
  • The latest survey data therefore suggest that more stimulus measures may be required to help boost domestic demand and recover some growth momentum."