HSBC Flash China Manufacturing PMI for October:
- expected 50.2
- prior was 50.2
–
Key points
Flash China Manufacturing PMIat 50.4 in October (50.2 in September)
- Three-month high
Flash China Manufacturing Output Index at 50.7 in October (51.3 in September)
- Five-month low (i.e the slowest expansion in 5 months)
Data collected 13–21 October 2014
Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC (bolding mine, though):
- “The HSBC China Manufacturing PMI improved to 50.4 in the flash reading for October, up from 50.2 in the final reading for September.
- Domestic as well as external demand showed some signs of slowing although both remained in expansion territory.
- Disinflationary pressures intensified, as both the input and output price indices declined further.
- Meanwhile both employment and inventory indices improved.
- While the manufacturing sector likely stabilized in October, the economy continues to show signs of insufficient effective demand.
- This warrants further policy easing and we expect more easing measures on both the monetary as well as fiscal fronts in the months ahead.”
