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05-05-2014, 04:31 PM
China's dragging economy is a reflection of the refocusing of investment led to that of consumption driven service based economy. Even then, IMHO with Chinese's good habits of being thrifty, the marginal propensity to spend will be substantially lower than that of Western culture and hence the drag will go on for a long time.
HSBC final PMI for April is 48.1, marginally up from March’s 48
SCOTT MURDOCH THE AUSTRALIAN MAY 05, 2014 1:41PM
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CHINA’S powerful manufacturing sector is showing renewed signs of weakness, indicating that economic conditions across the country remain fragile.
The HSBC final Purchasing Managers Index (PMI) came in at 48.1 in April, down from an initial ‘flash reading’ of 48.3.
The result was up marginally from 48 in March but a reading below 50 shows that the manufacturing sector, which is one of China’s largest employers, remains in contraction.
An official PMI index from the National Bureau of Statistics (NBS) came in at 50.4, but the HSBC survey is considered more reliable. The NBS index surveys mainly state-owned enterprises which are renowned in China for inflating their results.
HSBC chief China economist Qu Hongbin said the bank’s survey also showed that employers cut jobs during March for the sixth consecutive month and future purchase orders were still in decline.
“The latest data implies that domestic demand contracted at a slower pace but remained sluggish,” he said. “The new export orders and employment indices contracted and were revised down from their earlier readings.
“That indicates that the manufacturing sector and the broader economy as a whole continues to lose momentum.”
HSBC final PMI for April is 48.1, marginally up from March’s 48
SCOTT MURDOCH THE AUSTRALIAN MAY 05, 2014 1:41PM
Save for later
CHINA’S powerful manufacturing sector is showing renewed signs of weakness, indicating that economic conditions across the country remain fragile.
The HSBC final Purchasing Managers Index (PMI) came in at 48.1 in April, down from an initial ‘flash reading’ of 48.3.
The result was up marginally from 48 in March but a reading below 50 shows that the manufacturing sector, which is one of China’s largest employers, remains in contraction.
An official PMI index from the National Bureau of Statistics (NBS) came in at 50.4, but the HSBC survey is considered more reliable. The NBS index surveys mainly state-owned enterprises which are renowned in China for inflating their results.
HSBC chief China economist Qu Hongbin said the bank’s survey also showed that employers cut jobs during March for the sixth consecutive month and future purchase orders were still in decline.
“The latest data implies that domestic demand contracted at a slower pace but remained sluggish,” he said. “The new export orders and employment indices contracted and were revised down from their earlier readings.
“That indicates that the manufacturing sector and the broader economy as a whole continues to lose momentum.”