China flash PMIs *down* | FT Alphaville

China flash PMIs *down*

The HSBC flash PMI for March is 48.1; the fifth straight month of contraction and the worst for four months.

China flash PMIs - HSBC/Markit - March 2012

New orders and exports, both closely-watched components of the index, weren’t so bad, says HSBC’s China economist Hongbin Qu. But employment was less encouraging:

External demand remained in contraction territory, but the decline was at a slower pace, implying that there are no improvements in the demand outlook. More worryingly, employment recorded a new low since March 2009, suggesting slowing manufacturing production was hindering enterprises’ hiring desire.

China flash PMIs - HSBC - March 2012 - New orders, export orders, employment components

Related links:
China’s probably already below 8% GDP growth – FT Alphaville
China’s not-so-amazing PMIs – FT Alphaville