02 September 2013 04:39 [Source: ICIS news]
SINGAPORE (ICIS)--HSBC’s final reading of its purchasing managers’ index (PMI) for China rose to 50.1 in August from 47.7 in July, boosted by new orders and output, the investment bank said on Monday.
The final August reading matched HSBC’s preliminary PMI figure published on 22 August.
PMI is a barometer of an economy's manufacturing activities, with a reading above 50 indicating an expansion, and a lower number denoting a contraction.
The modest rebound in new orders and output in August was mainly driven by the “initial filtering through of recent stimulus measures and companies’ restocking activities”, Hongbin Qu, chief economist, China & co-head of Asian Economic Research at HSBC said.
“We expect some upside surprises to China's growth in the coming months,” Qu added.
China’s new export orders, meanwhile, declined for the fifth straight month in August and at a faster rate than that recorded in July, according to HSBC’s PMI survey.
“Weak client demand in Europe and the US was said to be behind the latest reduction in new business from abroad,” it added.
China’s official PMI rose to 51.0 in August from 50.3 in July, the highest level since April last year, according to the National Bureau of Statistics over the weekend.
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