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Flash PMI to Pressure PBOC on Further Stimulus
The advance release of the Chinese purchasing manager’s index (PMI) dissapointed last month as it dipped into a 11 month low with a reading of 49.2. The factory sector is struggling to gain traction and get back above 50 which would signal expansion. Economists were expecting it be in the 50.6-8 range. The Chinese government has pushed a new normal for growth expectations from what is seen as a pre-emptive move ahead of missing the 7 percent growth target for 2015. A below forecast flash PMI of 49.4 would put further pressure on the People’s Bank of China to launch further stimulus measures to avoid the economy ... (full story)