In July this year, the China HSBC Flash Manufacturing Purchasing Managers Index (PMI) fell to an 11-month low of 47.7 from June's final reading of 48.2, marking the third straight month in which the index reading was below 50. A reading below 50 indicates contraction, while a figure above 50 indicates an expansion.The flash Chinese manufacturing output index for July decreased to 48.2, as compared to the final value of 48.6 for June, the HSBC said. The new orders sub-index fell to its lowest level in 11 months, remaining below 50 for a third consecutive month. The sub-index measuring employment slid to 47.3 in July, the weakest level since March 2009, down from 47.6 in June and below 50 for the fourth straight month.
"The lower reading of the July HSBC Flash China Manufacturing PMI suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking," said Hong bin Qu, the HSBC's chief economist for China. "This adds more pressure on the labor market," he added.
"As Beijing has recently stressed securing the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilize growth," Mr. Qu said.
