HSBC flash China March PMI tumbles to 48.1 (by V. Phani Kumar)

HONG KONG (MarketWatch) -- China manufacturing activity fell sharply in March as the rate of booking new orders fell to a four-month low at factories, leading to weaker generation of jobs, according to an initial reading of findings in an HSBC survey released Thursday. The so-called "flash" manufacturing Purchasing Managers' Index for March printed at 48.1, down from a final reading of 49.6 in February, HSBC said. "Weakening domestic demand continued to weigh on growth, as indicated by a slowdown in new orders, which came in at a four-month low," said Hongbin Qu, chief economist for China at HSBC. "More worryingly, employment recorded a new low since March 2009, suggesting slowing manufacturing production was hindering enterprises' hiring desire." The data call for further easing steps from Beijing, Qu said. The flash PMI is based on 85% to 90% of the total responses during a given month, and is an early indicator of business conditions facing Chinese manufacturers.