The HSBC Flash China Manufacturing PMI reading for March suggests that China’s growth momentum continued to slow down. Weakness is broadly-based with domestic demand softening further. We expect Beijing to launch a series of policy measures to stabilize growth. Likely options include lowering entry barriers for
private investment, targeted spending on subways, air cleaning and public housing, and guiding lending rates lower.
- Flash China Manufacturing PMI™ at 48.1 in March (48.5 in February). Eight-month low.
- Flash China Manufacturing Output Index at 47.3 in March (48.8 in February). Eighteen-month low.
- Domestic new orders very weak.
- New export orders increase.
