Sunday, March 11, 2012

China Manufacturing Continues Contracting in 2012, "Deteriorating external demand"

● Baidu Planet 

HSBC China Manufacturing PMI

China Manufacturing PMI The HSBC China Manufacturing Purchasing Managers' Index, compiled by Markit, was +0.8 to a 4-month high of 49.6 in February. However, this was the 4th consecutive monthly manufacturing contraction and the 7th manufacturing contraction in the past 8 months. This reading is above the 32-month low of 47.7 in November, but still indicates ongoing stagnation and slight contraction. The Chinese government had implemented fiscal and monetary measures to slow down the economy to contain prices. However, policy is being reviewed, revised, and reversed to stimulate economic growth. The Chinese Federation of Logistics and Purchasing PMI was 51.0 (+0.5) for February, indicating expansion.

China Manufacturing PMI by Month Manufacturing began contracting, an Index reading of less than 50, in July 2011. The chart peaks were 55.7 in March 2010 and 55.3 in November 2010. An index reading above 50 indicates an overall increase in manufacturing. The PMI is a percentage - not a total.

● Baidu Planet 

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