According to the August Early Caixin Manufacturing PMI for China, the measure hit a 77-month low.

The research firm reported the number was 47.1 points.

The final PMI for the sector in July was 47.8, below the 50-point mark that separates growth from contraction.

Figures for components of the index showed that new orders and employment contracted more sharply from the previous month than any other categories. Output also decreased at a faster rate than in July.

Also:

The weakness was partly caused by external factors, including weaker demand from Europe, which was struggling to cope with the Greek debt crisis, and a cheaper currency in some of China’s major trading partners including Japan, according to a report co-authored by He and Zhu He, a researcher at Caixin Insight Group

The definition of a recession in China may be very different than that of the U.S. where two negative quarters are needed for the recession to be official

Because the Chinese economy has grow close to 8% over the last several years, the PMI figure indicates that grow may have dropped below 7%, which could indicate a sharp drop in employment and critical factory activity. In other word’s China may be in a recession.

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