A recent report released by Markit Economics, a leader in financial services and economics reporting, discussed the latest figures on Chinese manufacturing from the HSBC Holdings’ June Purchasing Manager’s Index (PMI) report–some of which are more positive than others.
Data from the report shows that although operating conditions in China manufacturing facilities are growing weaker, total new orders “rose for the first time in four months”, according to the press release. While many news sources hailed the HSBC Holdings findings as evidence of a “lackluster” economy in China, some of the less-reported details of June’s PMI are worth more optimism. For example, average input prices fell at modest rates in June, companies discounted their selling prices and saw an uptick in sales, minor improvements in demand conditions were seen at the end of the second quarter and firms have been depleting their stocks at faster rates to meet the demand for new orders.
Although some of the figures for the June PMI are disheartening, it’s important to remember not only that all markets experience ups and downs (especially in a still-depressed global economy), but also that disappointing statistics often lead to industries working harder than ever to not only get back to a neutral baseline, but to start achieving again. A glance at the Markit historical overview shows that despite normal ups and downs, China manufacturing is still doing far better than it was during the height of the recession in mid-2008.
More than anything else, it’s essential to not only look at numbers or interpretations of statistics from one source, but to analyze yourself in making your parts outsourcing decisions. We at US Connections are here to help you make an informed decision based not only on industry numbers overall, but also based on our individual clients.
US Connections, LLC is a leader in connecting US manufacturing companies with qualified China manufacturers. They boast an impeccable product line including gears, stamping products, machining and CNC machining products. Extensive hands-on, day-to-day operations of US manufacturing firms. ISO inspectors who have a deep knowledge of firms across the States – their strengths and their weaknesses. An Asian Pacific office with years of experience developing partnerships with countless manufacturers looking to acquire intellectual property or partner with a US firm for market expansion.