China Manufacturing Contracts for 10th Consecutive Month: "Intensifying downward pressure"

China Manufacturing PMI by Month



Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC, said: "The final reading of the HSBC manufacturing PMI (August) confirmed that China's manufacturing sector still faces intensifying downward pressure. New export orders contracted at the fastest pace since March 2009, this, combined with a record high in stocks of finished goods sub-index, and a 41-month low employment index, suggests China's exporters are facing increasing difficulties amid stronger global headwinds. Beijing must step up policy easing to stabilize growth and foster job market conditions".

China Manufacturing PMI Series Moving Average



Chinese Job Losses Continue "Staff numbers in the Chinese goods producing sector decreased during August, with the rate of job shedding the fastest in 41 months. The latest decrease in headcounts was the sixth in as many months. Reduced employment in part reflected falling new order volumes."