China’s flash PMI data has slumped to an 11-month low as manufacturing demand continues to diminish.
The HSBC flash purchasing managers’ index (PMI), which surveys sentiment in the region, recorded a level of 47.7 in July, down from 48.2 in June. A reading below 50 indicates a decline.
“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,” Hongbin Qu, chief China economist and co-head of Asian economic research at HSBC said.
“This adds more pressure on the labour market. As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilise growth.”