HSBC Report: Flash PMI at 3-Month Low
OREANDA-NEWS. December 20, 2013. Manufacturing conditions in China fell to a three-month low in December, according the HSBC Flash China Manufacturing Purchasing Managers’ Index™ (PMI™). The index dropped to 50.5, from 50.8 in November.
Despite the fall, growth in new orders increased to a nine-month high, while output also increased, albeit at a slower rate. New exports orders rose, at a faster rate. Employment decreased, at a faster rate.
Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research, said: “The December HSBC Flash China Manufacturing PMI™ reading slowed marginally from November’s reading. But it still stands above the average reading for 3Q, implying that the recovering trend of the manufacturing sector starting from July still holds up. As a result we expect China’s GDP growth to stabilise at around 7.8 per cent year-on-year in 4Q.”
The Flash PMI™ is the earliest available indicator of operating conditions in China. It is published around a week before the final PMI™ data is released and is based on around 85 per cent to 90 per cent of total PMI™ survey responses.
The Flash China Manufacturing Output Index hit a two-month low in December. The index fell to 51.8, from 52.2 in November.
The final December data will be published on 2 January 2014.
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