HSBC/Markit Flash reading for manufacturing PMI for February: 48.3
- expected 49.5
- prior was 49.5
AWFUL figure
- Seven month low
The response of the AUD is what is to be expected after such a dreadful result.
There are bids around 50, stops lower down.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co – He ad of Asian Economic Research at HSBC said: “ February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building – up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine – tune policy to keep growth at a steady pace in the coming year.”
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Via MNI:
Zhang Zhiwei, economist of Nomura,
“We reiterate our view that the recovery in China is not sustainable and that GDP growth will slow to 7.5% y-o-y in Q1 and 7.1% in Q2, despite favourable base effects. Considering China’s reported 2014 GDP growth target of 7.5%, we expect the government to loosen monetary policy in Q2 to support growth.”
