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20 Feb 2014

Flash PMI at seven-month low

Flash PMI at seven-month low

Output fell and new export orders decreased, according to the HSBC Flash China Manufacturing PMI™

Conditions in China’s manufacturing sector deteriorated in February, according to the HSBC Flash China Manufacturing Purchasing Managers’ Index™. The index fell to a seven-month low of 48.3, from 49.5 in January.

The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening

Qu Hongbin,
Chief Economist for Greater China, HSBC

Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research, HSBC, said: “February’s Flash reading of the HSBC China Manufacturing PMI™ moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year.”

Output fell and new orders and new export orders also decreased. Employment fell at a faster rate. Backlogs of work dropped.

The Flash PMI™ is the earliest available indicator of operating conditions in China. It is published more than a week before the final PMI™ data is released and is based on around 85 per cent to 90 per cent of total PMI™ survey responses.

The HSBC Flash China Manufacturing Output Index also fell to a seven-month low. The index was 49.2 in February, from 50.8 in January.

The final February PMI™ is due for release on 3 March.

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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