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Chinese manufacturing and export orders continued to fall in May, and the deceleration is expected to continue for at least the next several months, according to the results of a monthly survey by banking giant {complink 6453|HSBC Holdings plc}.
Manufacturing conditions have deteriorated in China over the last seven months as demand from Europe withered in the face of continued economic weakness in Europe and fiscal debt-related crisis at several of the region's leading economies. Exports into the United States have also come under pressure in recent months, pushing down the HSBC Flash Manufacturing Purchasing Managers' Index (PMI) to a seven-month low. In June, new export orders decelerated at the fastest pace since March 2009, HSBC said.
“China's manufacturing sector continued to slow in June, though the pace of slowdown seems to be slowing,” said Hongbin Qu, chief economist, China, and co-head of Asian Economic Research at HSBC, in a statement.
“With external headwinds remaining strong, exports are likely to decelerate in the coming months. The sharp fall of prices and moderation of new orders suggest weak domestic demand, posing destocking pressures for Chinese manufacturers. All will likely weigh on the jobs market. As such, we expect more decisive policy stimulus to reverse the growth slowdown.”
HSBC said new orders, new export orders, and output are contracting at a “faster rate,” while other segments of the PMI, including stocks of purchases, quantity of purchases, and employment are contracting at a “slower rate.”
The Flash China PMI is based on 85 percent to 90 percent of survey responses from more than 420 manufacturing companies. HSBC conducts the survey in conjunction with Markit, a global financial services company.
I can't help but wonder if this will effect Chinese counterfeiting which has been booming.
Or this can be counterfeiting, which is flooding the market so the original manufacturers are feeling the pain.
But the report only give qualitative picture of the drop in orders and some quantitive report can help in gauging the problem. The Euro zone problems have been bugging the economy for more than 2 yrs now, i wonder when the situation will improve.
Or this can be counterfeiting, which is flooding the market so the original manufacturers are feeling the pain.
But the report only give qualitative picture of the drop in orders and some quantitive report can help in gauging the problem. The Euro zone problems have been bugging the economy for more than 2 yrs now, i wonder when the situation will improve.
Somehow, I don't think counterfeiting is counted in the GDP, although I could be wrong…
I don't think counterfeiting is counted in the GDP
@Barbara, you are right. GDP doesnt include gambling, smuggling, and counterfeiting. And that is the reason why GDP is not the most reliable measurement indicator.
The Euro zone problems have been bugging the economy for more than 2 yrs now, i wonder when the situation will improve.
@ Himanshugupta, I think things have definitely improved after Greece elections. Infact Dow jones is still above 12k levels which is bullish sign. Moreover emerging markets are rallying because oil prices are falling drastically. I believe by 2013 we will see the early signs of recovery.
I applaud the decision of having WiFi only versions to start with. That will reduce the cost of the tablet significantly which will encourage the users to give the new Windows tablet a shot (including myself). Another important point is how long will the battery of the new tablet last with an Ivy processor onboard. Atom processor was power efficient but I am not sure if Ivy processor has the same edge. Battery life on an iPad is really good. A fully charged iPad will easily last a working day for an average user doing typical tasks on a computer such as web browsing, text editing, emailing, listening to music and watching videos etc. Without matching the same level of battery life as an iPad, Windows tablets will really struggle to sell. Also let's all hope that Windows 8 will not have the famous 'blue screen of death' that exists in all the previous versions of Windows. iOS does not have that 'feature' that keeps all the users happy.
Ugh, another Apple vs Windows decision. The Surface sounds like it has some neat bells and whistles, but to give up the iPad and iPhone? It's more likely people such as myself that have yet to buy a tablet will make the go-with-Apple or not decision, rather than Apple installed users opting for a Windows device.
LOL. Cynical, but so true.
In my opinion Windows Surface will not even move the APPLEcart by an inch. But it will surely get some acceptance in the developing countries if the price becomes attractive.
If Microsoft plays out its strategy correctly it can gain the attention and money of consumers with an Xbox, similar to the way Apple attracted iPod users to iPhone and iPad. The real question for me is not if people will latch on to a Windows-OS tablet, but rather will the company want more control of the hardware build and bring some of it back into the U.S.
Consumers will soon have a Google tablet decision to make, as well. Analysts expect that announcement this week at Google i/O. It will run the next version of Android OS called Jelly Bean. Gizmodo believes it uncovered a leaked document with the specs.
With new open territories in the horizon it will be foolish not to take risk and try to capture some piece of the smartphone and digital information pie. Whether MS's tablet will be able to capture people's attention or not is still an open question but MS's bold step to jump into tablet and smartphone business is a good sign of thinking more than just software business, which is becoming a minion in today's world.
Laurie, What would be the justification for bringing the production of the Microsoft Surface to the United States? I bet the design was done here and, as research firms repeatedly tell us, that's where the bulk of the profit is. The production assembly itself doesn't add much value to the process and the cost to the OEM like Microsoft is negligible. Why should Microsoft undercut itself in a match-up against Apple by insisting on local production especially when it is looking at global sales rather than just winning in the United States?
Barbara, Right. Current iPad users may remain Apple fans while those who currently don't have a tablet PC or may be dissatisfied with the Android option may go with Microsoft Surface. You neglect a third option and that is those who already have an iPad and want a replacement but don't want to spend another $700 to $900 for a device that essentially performs the same functions as a much cheaper option. The iPad, although some people swear by it, is still a reader and web surfing device. It has nothing compelling that's limited to Apple.
Microsoft Surface, on the other hand, if coupled with a nifty keyboard (something soft and foldable), USB port for external keyboard and possible attachment to a bigger screen for office use, could also come with the option of Microsoft Office. In effect, I would have the option of getting rid of my current notebook (I don't need the disc drive) and hitting the road all the time with only one device rather than two. That, I would say, might convince me to buy Surface.
Prabhakar, Microsoft isn't targeting the Surface at Android necessarily. It is going directly at Apple. The battle may seem to be just about tablets but that's not Microsoft's main concern. The company has seen that it's software business could be in jeopardy the more successful Apple becomes. Rather than get itself stuck in the PC world forever, it had to decide whether or not it could afford to sit back and let surrogates do the fighting for it. HP failed, so did RIM and Samsung hasn't made any dent in the iPad domination of both the hardware and the operating system. If Microsoft didn't get in it would have its lunch eaten by Apple completely.
Will consumers and professionals give up their iPads for a Windows OS tablet?
@Laurie, thanks for the post. I think consumers and professionals dont mind buying Windows OS tablet because many of them are familiar with the Windows OS and moreover many windows applications are already available online.
@tirlapur Yes, I can see going for a Windows tablet because I am used to working with its setup on my home PC and woudl expect to pick up on ioperating it faster than I would with a completely new system.
Ariella, That's the lure. Microsoft wants to play to its strength. It already has an installed user base. The PC partners it had were obviously failing to compete against Apple so it feels it can do a better job. Failure to do something could mean the end of its role in the PC market if smaller form factor devices overtake desktops, notebooks and ultrabooks.
Bolaji and Ariella: I have an iPad. Rather than use it like most. It has become storage drive for digital movies. I think I would use a Windows tablet more often than Apple. Although my first computer was an Apple, I moved to Windows and didn't look back. Aside from the Xbox, Microsoft hasn't had much luck in getting consumers to adopt its hardware products. The idea to bring manufacturing back to the U.S. would give the company more control of the quailty.
I'm also looking forward to Windows 8.
Do you have any stats on for how long had China been growing? The slow hasn't been catastrophic and at least its a global shrinkage, so when (?) it grows back, they would hope they grow with it.
I am used to working with its setup on my home PC and woudl expect to pick up on ioperating it faster than I would with a completely new system.
@Ariella, very true. I think many end users echo your point. They are used to MS office tools and OS. Many of them prefer MS over other open source based OS because of ease of use.
I'm also looking forward to Windows 8.
@Laurie, I am also eagerly looking forward for Windows 8 tablet. Currently I dont own any tablets because the interface of android based tablet is pretty similar to the smartphone I have. So I would like to buy a tablet which is more powerful and userfriendly. I am sure windows 8 tablet will have those features.
Consumers will soon have a Google tablet decision to make, as well.
@Laurie, Do you think this move by Google to release its own tablet will make Samsung uncomfortable because Google tablet will directly compete with Samsung Galaxy tablet.
I believe that should be Microsoft's biggest selling point. Full integration with their Office products.
The bad thing is that marketshare has big influence in consumer decisions. When you go with a company that has <4% market share, you'd expect the app environment to be the same way... Microsoft can pay companies to develop apps for them but you can't pay all.
What do you think they can do about this?
When you go with a company that has <4% market share, you'd expect the app environment to be the same way
@Mr. Roques, why can't we install the existing softwares directly on this tablet ? Why Do we need another app when we can directly install the softwares because windows 8 is common to all kind of devices.
Mr. Roques: I agree with you that MS usp is that its products can be seamlessly integrated with enterprise products like Office, Outlook etc.
Howvever, this does not mean that they would have a high marketshare because the perception of the consumer goes with the stats. Since, apps for the mobile platform are not that common for MS consumers either prefer iOS or Android.
China is catching up isnt it. The only difference that the chineese and the others have is that the thinking mentality. Chineese people always think ahead where as most of us who live in other countries do not bother to look beyond what we see. That is where China leads the way.
Well, you can't simply install the same microsoft office that you have on your desktop/laptop. There has to be some modifications to it (for it to work properly on a tablet – dimensiones, etc).
Its easier for microsoft software but when a third party can go for a bigger market (android, iOs), the will.