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UH-OH: The flash PMI reading for Chinese manufacturing just went negative

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Asia

China’s flash manufacturing PMI has hit an 11-month low, dipping to 49.2.

A reading below 50 signifies the sector is contracting rather than expanding.

The market was expecting a read of 50.2, which would signal a slight expansion, so this is a significant miss.

Chinese authorities this year revised down the official growth target to 7% from 7.5% previously, and have signalled likely stimulus measures in the months ahead to avoid a harder landing for the Chinese economy.

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