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24 Oct 2013

Orders boost Flash PMI

Orders boost Flash PMI

Businesses reported that new orders and backlogs of work both increased

China’s manufacturing sector hit a seven-month high in October, according to the HSBC Flash China Manufacturing Purchasing Managers’ Index™. The index rose to 50.9, from 50.2 in September.

The momentum is likely to continue in the coming months, creating favourable conditions for speeding up structural reforms

Qu Hongbin,
Chief Economist for Greater China, HSBC

Businesses reported that new orders and backlogs of work both increased at a faster rate. New export orders also rose, while input and output prices were higher. However, employment levels fell, albeit at a slower rate.

Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research, said: “October’s HSBC Flash China Manufacturing PMI™ rose to a seven-month high of 50.9 on the back of broad-based modest improvements. This implies that China’s growth recovery is becoming consolidated into 4Q following the bottoming out in 3Q. The momentum is likely to continue in the coming months, creating favourable conditions for speeding up structural reforms.”

The Flash China Manufacturing Output Index also improved, rising to a six-month high of 51.0, from 50.2 in September.

The Flash PMI™ is based on a survey of purchasing executives in China. This early indicator is based on around 85-90 per cent of total PMI™ monthly survey responses. An index figure above 50 signals expansion, while below 50 signals contraction.

The final PMI™ is due for release on 1 November.

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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