China’s manufacturing conditions fell to a seven-month low of 48.3 in February, according to a flash reading from HSBC.
Analysts expected a reading of 49.5, unchanged from January. Anything below 50 signals contraction.
The production sub-index fell to 49.2 versus 50.8 in January.
The employment sub-index hit the lowest level since Feb. 2009.
HSBC’s Hongbin Qu commented:
“February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year.”
Here’s the full table of sub-indexes. Everything got worse: