PMI Data May Push People's Bank of China to Go Big on Stimulus

A downside surprise in the final reading of China’s HSBC Markit manufacturing PMI for April adds to early evidence that the economy continues to lose momentum heading into the second quarter. The case for a further cut in interest rates, perhaps as early as May, continues to strengthen.

The final reading for the HSBC PMI manufacturing survey came in at 48.9, down from 49.6 in March. That was lower than a flash reading of 49.2; the flash reading is based on 85 percent to 90 percent of total survey responses.