HSBC flash PMI for China rise to two-month high in September

20 September 2012 05:04  [Source: ICIS news]

SINGAPORE (ICIS)--HSBC’s September flash purchasing managers’ index (PMI) for China rose to a two-month high of 47.8, indicating that the country’s manufacturing sector is still contracting, but at a slower pace.

The flash PMI number for September was 0.2 points higher than August’s 47.6, HSBC said in a statement.

A figure above 50 indicates an expansion, while a figure below 50 represents a contraction.

Output, as measured by HSBC’s Flash China Manufacturing Output Index, fell to a 10-month low of 47 in September. This follows the August reading of 48.2.

China’s manufacturing growth is still slowing, but the pace of slowdown is stabilising,” HSBC chief China economist Hongbin Qu said.

“Manufacturing activities remain lacklustre, thanks to weak new business flows and a longer-than-expected destocking process,” Qu said.

The recent easing measures by Beijing is expected to lead to a modest improvement in manufacturing output from the fourth quarter of this year, Qu added.

By: Nurluqman Suratman

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