China’s factories are having a very rough couple of months, raising the prospect of even slower growth in the world’s second-biggest economy.
HSBC said Wednesday that its “flash” index of manufacturing purchasing managers’ sentiment fell to a eleven-month low of 47.7 in July, as new export orders slowed and output fell.
Slower growth in China’s vast manufacturing sector, seen as an economic bellwether, could raise pressure on the country’s policymakers to step in with stimulus measures.
“The lower reading of the July HSBC Flash China Manufacturing PMI suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking,” said HSBC chief China economist Hongbin Qu.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.