FACTORY output in China is continuing to weaken, as Markit’s purchasing managers’ index (PMI) indicated that manufacturing was contracting at the fastest pace since September 2012.
The PMI was registered at 48.3, down from 49.2 earlier in the month. Any figure under 50 indicates a decline.
China’s manufacturing PMI had a brief rally in the last quarter of 2012 and the first of this year, but the last three factory PMI readings have been negative.
David Tinsley, chief economist at BNP Paribas indicated that similar trends were appearing in other indicators and that continued weakness would impact growth. “Lower PMI surveys, slower rail-cargo volumes, soft electricity production and muted imports all suggest that the economy has almost certainly lost further momentum in the second quarter”.