Adding to the grim news on global growth, the HSBC Flash China Manufacturing PMI shows new export business declines at sharpest rate since March 2009.
Flash China Manufacturing PMI™ at 47.8 (49.3 in July). 9-month low.
Flash China Manufacturing Output Index at 47.9 (50.9 in July). 5-month low.
China New Export Business
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
“Falling orders dragged down the August flash PMI to a nine-month low, suggesting Chinese producers are still struggling with strong global headwinds. To achieve the stated policy goal of stabilizing growth and the jobs market, Beijing must step up policy easing to lift infrastructure investment in the coming months.”
Notice the sheer absurdity of the proposal: “Beijing must step up policy easing to lift infrastructure investment in the coming months”.
China is loaded up with malls with no shoppers, trains with no passengers, and even entire cities where no one lives, and economists want or expect China to start more infrastructure projects.
Mike “Mish” Shedlock
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