China PMI Slides as World Economy Cools

China’s PMI is not a bad marker for global economic activity. That being said, a key measure of it, issued by HSBC, showed a rapid contraction in May.

The HSBC Purchasing Managers’ Index fell to 48.7, down from 49.3 in April.

“Manufacturing activities softened again in May, reflecting the deteriorating export situation. This calls for more aggressive policy easing, as inflation continues to slow,” HSBC’s chief China economist, Hongbin Qu, said in a statement.

Policy may not do the trick. Most of the economies in the European Union, the largest region in the world by GDP, are either in recession or close to it. And, China’s own middle class has reason to be concerned about both wages and jobs as factory production falters.

China’s GDP growth is now pegged by some economists to be as low as 8.2%. That is a surge by most measures, but not in China.

Douglas A. McIntyre

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.