HSBC China PMI Hits 9 Month Low

China’s factories are faltering again, pointing to slowing growth in the world’s second-biggest economy.
HSBC said Thursday that its “flash” index of manufacturing purchasing managers’ sentiment fell to a nine-month low of 48.3 in June, as new export orders dropped sharply and production contracted for the first time in eight months.

Slower growth in China’s vast manufacturing sector, seen as an economic bellwether, could raise pressure on the country’s central bank to try to stimulate the economy even as it tries to contain an explosion of credit.
The factory report was much weaker than analysts were expecting and reinforces concern that second quarter growth in China will slow from the 7.7% rate seen in the first three months of the year.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza