China’s Factories are doing it Tough

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.


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