China Economy

MNI index adds to fears China recovery losing momentum

MNI flash overall conditions index fell to 57.1 from 58.5 in April, but still marked its eighth straight month of expansion

PUBLISHED : Friday, 24 May, 2013, 10:24am
UPDATED : Monday, 30 May, 2016, 5:01pm

China’s economic recovery may be losing momentum, as indicators for new orders and financial conditions worsened, according to the latest MNI China business sentiment indicator.

The flash overall conditions index fell to 57.1 from 58.5 in April and 58.2 in March, MNI, a unit of Deutsche Boerse Group. It was the eighth straight month of expansion for the overall index, however, MNI said.

The flash new orders indicator fell to 56.5, from 58.2 in April, and the financial positions indicator worsened to 52.0, from 54.6. The flash availability of credit index rose to 44.3 in May, from 42.9, MNI said.

The flash production index fell to 54.3, from 57.3.

The flash survey is not seasonally adjusted but is intended to give a preliminary reading of Chinese business sentiment and is released a week ahead of the final figure.

The MNI figures are the latest indicators suggesting that the world’s second largest economy may be losing steam.

China’s flash HSBC Purchasing Managers’ Index (PMI) on Thurswday entrenched fears that China’s recovery had stalled, possibly weakening global growth prospects.

The flash Chinese manufacturing PMI for May fell to 49.6 from 50.4 in April, slipping under the 50-point level demarcating expansion from contraction for the first since October.

The numbers sent a shiver through global markets, helping to push the benchmark Hang Seng Index down 2.5 per cent on Thursday, and to strip 7.3 per cent from the Nikkei 225 in Tokyo.