Chinese Factory Gauge Slumps as Slowdown Has Li on Standby
Bloomberg - Mar 23, 2015
A Chinese manufacturing gauge fell to an 11-month low in March, suggesting more stimulus may be needed to bolster factories in the world’s second-largest economy.
The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 49.2, missing the median estimate of 50.5 in a Bloomberg survey and down from February’s 50.7. Numbers below 50 indicate contraction.
The first reading of momentum in March adds to concerns over first-quarter growth after industrial output, investment and retail sales data missed analysts’ estimates in January and February. Premier Li Keqiang set a 2015 target of about 7 percent and pledged to take action if growth slows toward the lower limit of its range and cuts into jobs and income.
“Activity growth slowed in the first quarter,†said Tim Condon, head of Asia research at ING Groep NV in Singapore. “If the official PMI also slides, it will reinforce that further policy stimulus will be needed to hit the 7 percent GDP growth target.â€
Chinese stocks slipped in Hong Kong after the report.
