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China Flash PMI Sinks to 7 Month Low

Nothing good to report here.  China’s economy remains extremely sluggish (via Markit):

Key points

„ Flash China Manufacturing PMI™ at 49.6 (50.4 in April). Seven-month low.
„ Flash China Manufacturing Output Index at 51.0 (51.1 in April). Three-month low.

Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC said:

“The cooling manufacturing activities in May reflected slower domestic demand and ongoing external
headwinds. A sequential slowdown is likely in the middle of 2Q, casting downside risk to China’s fragile growth recovery. Moreover, the further signs of labour market slackness call for more policy support. Beijing still has fiscal ammunition to do so.”

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