China’s HSBC Flash PMI for May is out and missed again at 49.1 versus 49.3 expected but up a little from April. Annabel Fiddes, Economist at Markit:
“The Flash China Manufacturing PMI pointed to a further deterioration in operating conditions in April, with production declining for the first time in 2015 so far.
Moreover, softer client demand, both at home and abroad, along with further job cuts indicate that the sector may find it difficult to expand, at least in the near term, as companies tempered production plans in line with weaker demand conditions.
On a positive note, deflationary pressures remained relatively strong, with both input and output prices continuing to decline, leaving plenty of scope for the authorities to implement further stimulus measures if required.”
At least it improved in the second derivative:
But it’s not looking great with new export orders sinking: