According to the August Early Caixin Manufacturing PMI for China, the measure hit a 77-month low.
The research firm reported the number was 47.1 points.
The final PMI for the sector in July was 47.8, below the 50-point mark that separates growth from contraction.
Figures for components of the index showed that new orders and employment contracted more sharply from the previous month than any other categories. Output also decreased at a faster rate than in July.
Also:
The weakness was partly caused by external factors, including weaker demand from Europe, which was struggling to cope with the Greek debt crisis, and a cheaper currency in some of China’s major trading partners including Japan, according to a report co-authored by He and Zhu He, a researcher at Caixin Insight Group
The definition of a recession in China may be very different than that of the U.S. where two negative quarters are needed for the recession to be official
Because the Chinese economy has grow close to 8% over the last several years, the PMI figure indicates that grow may have dropped below 7%, which could indicate a sharp drop in employment and critical factory activity. In other word’s China may be in a recession.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
