The HSBC-Markit ‘flash’ China manufacturing PMI report for May will be released at 11.45am Sydney time today.
Here’s the state of play.
- The HSBC-Markit PMI survey is undertaken by over 420 small-to-medium-sized manufacturing firms, not larger companies as is the case in the government’s NBS PMI release.
- The flash reading is a preliminary estimate based on around 85-90% of survey responses.
- The index fell to 48.9 in April, below the level that separates industry expansion from contraction.
- It was also the lowest level seen since April 2014.
- The weakness was led by falling domestic demand which was partly offset by an expansion in export orders. This was the opposite to that reported in the government survey.
- While not a perfect correlation, the index tends to rise in the middle of the calendar year.
- Perhaps reflecting this, analysts expect the PMI reading to increase to 49.4 in May (shown in red).
Business Insider will have full coverage as the data breaks.