Chinese Flash Caixin PMI manufacturing disappointed again in September, falling to the lowest level since March 2009. The index fell to 47.0 (consensus and Danske Bank estimate 47.5) from 47.3 in August.
The index highlights the very weak state of Chinese manufacturing in Q3 and fuels the fear of a hard landing in China. Chinese stocks in the offshore Hong Kong market are down more than 4% this morning.
The details of the report were also weak. The new orders index fell to 46.0 from 46.3 and the stocks of finished goods index jumped to 52.8 in September from 50.4 in August. The order-inventory index thus deteriorated further, which does not bode well for the short term and points to continued downside risk for China in the coming months.
The export orders index also fell from 46.0 to 45.8 highlighting the current challenges for Chinese exporters. The employment index rose slightly to 46.5 from 46.0 but it is still at a very low level and similar to the lows seen in early 2009.
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