Mecklai graph: Chinese manufacturing PMI hits new low

The manufacturing PMI data is that data point which has a direct correlation with the growth of the economy. This data point usually talks about expansion in the industry. It is mostly observed that a reading above 50.00 indicates an extension phase whereas a vice versa reading would rather be of a retrenchment phase.

The graphical presentation points out that a reading above 50.00 levels was observed only in the month of Oct 2011 at 51.1 levels. The Chinese economy has been witnessing a retrenchment phase since Nov 2011 which has been clearly stated. Thus in the future a better figure released on the PMI data front would deliver signs of growth or else an unease state for the world’s second largest economy would be maintained.

The below graph of the day depicts the Chinese purchasing manager’s index figures

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