China New Export New Orders Decline At Fastest Pace in 42 Months

HSBC China Manufacturing PMI™ shows Output falls at fastest pace since March.

Key points

New export orders fall at fastest rate in 42 months

Output and input prices continue to fall

Purchasing activity declines amid weak demand and lower production requirements

Data in September signalled a stronger decline in Chinese manufacturing output, as the volume of new orders fell for the eleventh consecutive month. New export orders declined at the sharpest rate in 42 months amid reports of weak international demand, while lower workloads were linked to a fall in backlogs of work.

After adjusting for seasonal factors, the HSBC Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – posted 47.9 in September, up slightly from 47.6 in August, and signalling an eleventh successive month-on-month deterioration in Chinese manufacturing sector operating conditions. However, the latest data signalled the rate of deterioration eased marginally.

The rate of reduction in manufacturing output in China accelerated during September, signalling the strongest contraction since March. A number of respondents that reported a fall in production levels attributed this to lower order volumes as both domestic and international demand weakened. However, the rate of reduction in new export orders remained stronger than the decline in overall new orders. Panellists commented on tough trading conditions in a numb

Incredulous2 Wrote: Sep 30, 2012 11:51 PM

"Where's my toaster?"

Flag as Offensive

PhillupSpace2 Wrote: Sep 30, 2012 2:26 PM

Greg1084, I too wonder how many container ships are moored in Subic Bay doing nothing.
Like Mojave, Roswell as well as various other Airports around the nation loaded with parked commercial airplanes, Subic is not on the radar of most of the world. I havn't been through there since Obama screwed things up but will check it out in the spring.

The US Navy sure left them some great facilities to help them along. But, like most countries once controlled by the Spanish, it is screwed and will need another Blackjack Pershing to straighten it out again some day! The solution is to bury them with a pig!

Blair31 Wrote: Sep 30, 2012 5:53 PM

China cheats. Need I say more?

wwint3 Wrote: Sep 30, 2012 10:40 AM

"The transition to a consumer-led economy from an export and infrastructure-building economy will be slow and painful, but also very necessary." Twenty years from now we will be thankful for government provided housing (dorms) and a 6.2845 yuan per hour job producing trinkets for Chinese consumers. Will we still call it progress?

PhillupSpace2 Wrote: Sep 30, 2012 4:23 PM

Due to Congresses protectionist laws around 1932 exports were reduced by almost half, leaving us with only the consumer led and infrastructure-building economy from the previous, prosperous export economy of the roaring 20s. Yes it was painful and history has recorded just how well that worked out for us! When we are left with only ourselves as customers it will truly be painful.

The way to fix our systemic problems, problems resulting from kicking the can and buying into the politicians euphoria WILL BE PAINFUL. Therefore,if Romney proposes to correct even a few of these problems, someones Government check will get Painfully smaller.

On the other hand, Obama promises to kick the can into another generation, sparing you the problem!

PhillupSpace2 Wrote: Sep 30, 2012 4:27 PM

So, guess who goin ta git dem votes? Call me on your Obamaphone and gimme da answer.

johnm h Wrote: Sep 30, 2012 9:27 AM

China could grow so spectaculary because it could invite foreign investors to make things for existing markets, using existing technologies. Japan followed the same approach for many years. It works as long as the rest of the world grows and is very large relative to the new export oriented economy and enjoys relatively free trade. But once the new export economy reaches a certain size relative to the rest of the world it must manufacture increasingly for itself and this requires freedom for entrepreneurs and consumers. This is risky. China will sort it out so we better start getting our own house in order. When China adjusts to a more balanced economy we need to be in a position to increase our exports to them.

zim3 Wrote: Sep 30, 2012 8:19 AM

Just another thing we can thank ODUMBA for ,,,,,,,,,,,

Greg1084 Wrote: Sep 30, 2012 8:06 AM

I wonder how many freighters and container ships are parked doing nothing in Subic Bay right now.

PhillupSpace2 Wrote: Sep 30, 2012 3:42 AM

Mish, thats why we wonder if those in Government talking about "Creating Jobs" are high from inhaling Sewer Gas!

As the marketing people will tell you, EVERYTHING STARTS WHEN SOMEONE SELLS SOMETHING! Then, the entrapeneur raises the financing, hires the technical personnel, locates the facilities, sets up the purchasing department (my friend who set up the purchasing at Southwest Airlines was employee # 13) Distribution network, advertising and accounting etc.

The most glaring reason nobody is starting businesses and hiring people is BECAUSE THERE ARE NO CUSTOMERS!!!!!

I started three different businesses in my time; One designing and building products, one a Service operation(Repairing and Overhauling state-of-the-art equipment.

PhillupSpace2 Wrote: Sep 30, 2012 4:13 AM

And lastly, a marketing business with a worldwide customer base, Commercial Aviation.

Frankly, if I were sitting on a couple million dollars in my matress, I wouldn't have any idea what type of business to start. There is a manufacturing base, a service industry and a marketing capability, none of which are operating at near 50% capacity for Anything in the world for which there is a customer base.

You cannot compeye with the asians in production, or Walmart in retailing. Anything you would like to try is being dominated by a behemoth!

Start another Taco Bell and make a living preparing each others Taco's?
How about some Hamburger joints; ever hear of YUM corp or the Golden Arches?

Marketing people once said, and correctly...

PhillupSpace2 Wrote: Sep 30, 2012 4:46 AM

The only marker that makes you rich is the US where people think they have to have everything. The people of the US have been shopping with borrowed money for 50 years so they never hit the wall. Even in the clinton years, the federal debt increased 1.3 Trillion.

When money is borrowed to pay for things it means that the people are getting things like Government services which they did not pay for and are able to buy things with the money they should have paid the Government bills with.

So, like today, people do not feel the recessions full impact as in the 1930s. that is why they are not panicking. Heck, it Obama borrowed enough money and sweetened the social services budgets, people would be voting for him--- oh wait, they are!

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PhillupSpace2 Wrote: Sep 30, 2012 4:59 AM

So, one final thought: Had Herbert Hoover followed up his promise of "A Chicken in every Pot and a Car in every Garage" with the promise to Borrow the money from China to not only pay for that Big Fat Hen and that Chevy Volt but also Cell Phones, Food Stamps, Housing, Medicaid, and aid to Women and dependant children, Abortion etc, Roosevelt would NEVER have become President!!

As Obama tells Letterman, interest rates are low so the debt is not a problem in the short run. I guess he plans to increase borrowing until it takes away All the Pain.

peggy149 Wrote: Sep 30, 2012 8:29 AM

IF CHINA GETS IN TOO BIG OF A RUT, THEY WILL CALL IN THE MARKERS...................LMAO, THEN WHAT OVOMIT??

patrickhenry20 Wrote: Sep 30, 2012 2:13 AM

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China New Export New Orders Decline At Fastest Pace in 42 Months

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China New Export New Orders Decline At Fastest Pace in 42 Months

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