The unofficial China HSBC manufacturing PMI report for June 2013 is out.
The headline number fell to a 9-month low of 48.2 from 49.2 in May.
This was a hair below economists’ forecast for 48.3.
Any reading below 50 signals contraction.
Here are the key points from Markit:
- Output contracts for first time since last October
- New export orders fall at the joint-fastest rate since March 2009
- Job shedding intensified
“Falling orders and rising inventories added pressure to Chinese manufacturers in June,” said HSBC’s Hongbin Qu. “And the recent cash crunch in the interbank market is likely to slow expansion of off-balance sheet lending, further exacerbating funding conditions for SMEs. As Beijing refrains from using stimulus, the ongoing growth slowdown is likely to continue in the coming months.”
Earlier today, we learned that the official NBS China manufacturing PMI fell to 50.1 from 50.8 in May.
The official number is more exposed to the larger, state owned enterprises, which tend to have an easier time accessing credit.
Indeed, interest rates have been on the rise in China. This is making it harder to operate as a small or medium-sized enterprise (SME) in the country.
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