- Flash was 49.7
- Prior month’s final result was 48.1
Official manufacturing PMI (announced over the weekend) showed an improvement
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From the report:
- After adjusting for seasonal factors, the HSBC Purchasing Managers’ Index … posted at 49.4 in May, down slightly from the earlier flash reading of 49.7, and up from 48.1 in April
Key points:
- Contraction of output eases to marginal pace
- Total new orders stabilise as new export order growth hits 49-month high
- Companies continue to cut staff numbers
Commenting on the China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
- “The final HSBC China Manufacturing PMI rebounded to 49.4 in May, up from 48.1 in April, and revised down slightly from the earlier flash reading of 49.7. New orders stabilized, while new export orders recorded an impressive expansion of 53.2. But growth momentum looked weaker than suggested in the flash reading as the stocks of finished goods index was revised up to 49.8 from 48.8 in the flash reading. The final PMI reading for May confirmed that the economy is stabilizing, but it is too early to say that it has bottomed out, particularly in light of a weaker property sector. The lack of a sustainable growth momentum warrants stronger policy support. We expect both monetary and fiscal policy to be loosened gradually over the coming months.”
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AUD/USD slightly lower on this data:
- Despite the good improvement on the previous month
OR
- Because of the fall from the flash reading
Take your pick, all biases catered for
!
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Roll on RBA announcement!