By a staff reporter
Operating conditions in the Chinese manufacturing sector deteriorated for the first time in seven months, according to HSBC.
The HSBC purchasing managers index – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – came in at 49.2 in May, down from 50.4 in April.
A reading below 50 indicates a contraction in the sector.
“Behind the meagre expansion of output, total new orders declined modestly and for the first time since last September. Demand from abroad also weakened over the month, with new export orders falling for the second month in a row,” HSBC said in the report.
“A number of panellists suggested reduced client demand, particularly in the US, had led to the overall reduction in export orders.”