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China HSBC PMI misses expectations in May

FXStreet (Bali) - China HSBC Manufacturing PMI came at 49.1 in May vs 49.3 expected and 48.9 in April. The data represents a two-month high but a miss in expectations.

Commenting on the Flash China Manufacturing PMI survey, Annabel Fiddes, Economist at Markit said: “The Flash China Manufacturing PMI pointed to a further deterioration in operating conditions in April, with production declining for the first time in 2015 so far."

“Moreover, softer client demand, both at home and abroad, along with further job cuts indicate that the sector may find it difficult to expand, at least in the nearterm, as companies tempered production plans in line with weaker demand conditions."

“On a positive note, deflationary pressures remained relatively strong, with both input and output prices continuing to decline, leaving plenty of scope for the authorities to implement further stimulus measures if required.”

China HSBC Manufacturing PMI below forecasts (49.3) in May: Actual (49.1)

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