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24 Jan 2013

Chinese pace quickens, Flash PMI shows

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Manufacturing growth in China is picking up speed as operating conditions improve at the quickest pace in two years, according to HSBC’s latest Flash Purchasing Managers’ Index™.  The headline figure of 51.9 in January represents a 24-month high and is the earliest available indicator of manufacturing conditions in China.
The latest figure is an improvement from the final PMI™ figure of 51.5 in December.

Despite the still
tepid external demand, the domestic-driven restocking process
is likely to add steam
to China's ongoing recovery in the
coming months

Qu Hongbin,
Chief Economist,
Greater China, HSBC

Output, employment and purchases all increased at a faster rate; new orders increased at a slower rate; and new export orders increased, in a change of direction. The Flash China Manufacturing Output Index rose from 51.9 in December to 52.2, a 22-month high. Any figure above 50 shows manufacturing growth, while below 50 signals contraction. The Flash PMI™ suggests momentum has been carried into 2013 after a strong upturn since November compared to the earlier months of 2012. 

Qu Hongbin, Co-Head of Asian Economic Research and Chief Economist, Greater China, said: “At 51.9, January’s HSBC China Manufacturing Flash PMI™ rose for the fifth consecutive month to the highest level in two years, heralding a good start to the New Year. Thanks to the continuous gains in new business, manufacturers accelerated production by additional hiring and more purchases. Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China’s ongoing recovery in the coming months.”

HSBC’s China Manufacturing PMI™ is due on Friday, 1 February.

The intellectual property rights to the HSBC Flash China Manufacturing PMI™ provided herein is owned by Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are trade marks of Markit Economics Limited, HSBC use the above marks under license. Markit and the Markit logo are registered trade marks of Markit Group Limited.

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