China’s official manufacturing PMI number came in at 49.8 for September.Economists expected it to climb to 50.1 from 49.2 in August.
Any reading below 50 signals contraction in the industry.
PMI is an index based on a survey of purchasing managers. The finding are considered to be a very reliable leading indicator of an economy.
Here’s a breakdown of the report courtesy of Fung Group.
Photo: Fung Group
On Friday, we learned that China’s HSBC Manufacturing PMI (unofficial) climbed to 47.9 from 47.6 in August.
“Chinese manufacturing growth is likely to be bottoming out,” said HSBC economist Hongbin Qu. “However, the sharper contraction of new export orders and the lingering pressures on job markets mean that Beijing should step up easing to support growth and employment. Fiscal measures should play a more important role in the coming months.”
China is second largest economy in the world and arguably its most important growth engine.
The hot emerging market is slowing. However economists remain split on whether the slowdown will end in a hard landing.
Countries around the world will be reporting September manufacturing PMI reports today.