China Manufacturing Contracts to 4-Month Low: Employment Lowest Since March 2009

China Flash Manufacturing PMI The HSBC China Flash Manufacturing Purchasing Managers' Index, compiled by Markit, was a surprising -1.5 to a 4-month low of 48.1 in March, the 5th consecutive monthly contraction and the 8th in the past 9 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 final, revised PMI and another PMI, by the Chinese Federation of Logistics and Purchasing, will be announced at the beginning of April.

China Manufacturing PMI 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 Flash estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data. A reading above 50 indicates Chinese manufacturing is expanding. The PMI is a percentage - not a total.