SINGAPORE (ICIS)--HSBC’s flash manufacturing purchasing managers’ index (PMI) for China was at a three-month low of 50.5 in December, down from its final reading of 50.8 in November, the investment bank said on Monday.
But the flash PMI in December remained above the average level in the third quarter, indicating that the country’s manufacturing sector continues to recover since July, according to Hongbin Qu, chief economist for China and co-head for Asian Economic Research at HBSC.
A PMI reading above 50 indicates an expansion, while a reading below 50 denotes a contraction in manufacturing activities.
“We expect [China's] GDP growth will be around 7.8% in the fourth quarter,” Qu said.
China is the world’s second biggest economy.