Hong Kong (CNN) – Investors have even more proof that China’s economy is slowing down.
The country’s manufacturing sector shrank for a fifth month in a row, according to HSBC’s latest China PMI survey Wednesday. That follows news of weaker industrial output from January to February.
This news shows that Beijing’s policies to slow down the economy are in fact working. But Premier Wen Jiabao – who’s been the champion of those measures – may now be asking whether they’re working a bit too well.
HSBC’s China Flash PMI came in at 48.1 point for March. Anything under 50 means a contraction. The worrying thing is that this manufacturing index has been under that 50-point mark since November. Not only that, March’s reading is the lowest in four months.
So why this continued contraction?
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