China’s HSBC/Markit flash manufacturing PMI has decreased this month to 47.7, following a result of 48.2 in June.
The ABC reports that the PMI, which concerns small and mid-size factories, is at an 11-month low. The PMI’s employment sub-index is now at its lowest level since the GFC.
This is the third straight month of contraction (represented by any result under 50 in the PMI) in China, as its government moves to stimulate the economy and protect an annual GDP increase of 7.5 per cent.
The South China Morning Post reports that the Chinese government has announced “a slew of fiscal and investment measures... to combat slower economic growth”
Hongbin Qu, chief economist for China at HSBC, told Business Spectator, "As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilise growth."