HSBC Flash China Manufacturing PMI Falls to 48, Output Index Falls to 46.7 (Most Since March 2009)

*see more charts on the release
Stocks in Asia are lower after weak (preliminary) Chinese manufacturing data was released. The HSBC Flash China Manufacturing PMI (Purchasing Managers Index) fell to 48 in November from 51 in October, and the Flash China Manufacturing Output Index fell to 46.7 in November from 51.4 in October. Under 50 = contraction. The release said both indicators were at 32-month lows, and it opened with the headline "Chinese manufacturers report sharpest fall in output since March 2009". This is the preliminary November PMI release. The final data is published on December 1. As you can see from the PMI and Production charts, the trend is down and both are below the 2010 lows.

More from the press release at Markit Economics.
Source: MarkitEconomics.com
"Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co Head of Asian Economic Research at HSBC said: “The dipping headline manufacturing PMI implies that IP growth is likely to slow further to 11-12% y-o-y in the coming months, as domestic demand cools and external demand is set to weaken despite the still resilient new export orders. That said, as inflation is likely to decelerate at a faster than expected pace, it will leave more room for Beijing to step up selective easing measures, which should gradually filter through to keep China on track for a soft-landing.”"

See PMI releases for Germany, France and the Eurozone as well.

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