The HSBC China manufacturing PMI for April (final)

48.9 (bad miss)

  • expected is 49.4
  • flash was 49.2
  • prior was 49.6

A bad miss on the expected and on the flash

AUD/USD marked lower toward session lows

Annabel Fiddes, Economist at Markit:

  • "China's manufacturing sector had a weak start to Q2, with total new business declining at the quickest rate in a year while production stagnated.
  • Fewer new orders appeared to stem from weaker domestic demand, as new business from abroad showed tentative signs of improvement.
  • Nonetheless, further job cuts and reduced purchasing activity suggest that the sector may struggle to expand in the near-term.
  • Furthermore, the PMI data indicate that more stimulus measures may be required to ensure the economy doesn't slow from the 7% annual growth rate seen in Q1."