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03-11-2014, 02:40 PM
China's final HSBC PMI hits 3-month high
FERGUS RYAN & AAP NOVEMBER 03, 2014 1:30PM
Activity in China’s manufacturing sector has edged up to a three-month high of 50.4 in October, compared to 50.2 in September HSBC has confirmed.
The final reading for October remained unchanged from the flash reading of 50.4 released earlier.
A reading above 50 on the survey points to expansion, while a reading below 50 indicates contraction.
HSBC chief China economist Hongbin Qu said that new orders and new export orders sub-indices saw small downward revisions from their previous flash reading, but both "remained in expansion territory”.
Meanwhile, the employment and inventory sub-indices also saw small upward revisions.
"Overall, the manufacturing sector continued to stabilize in October, however the sequential momentum likely weakened” he said.
Mr Qu said that the economy still shows clear signs of insufficient effective demand.
"We still see uncertainties, given the property downturn as well as the slow pace of global recovery, and expect further monetary and fiscal easing measures in the months ahead.”
On Saturday, China's official purchasing managers index came in at 50.8 for October, according to the National Bureau of Statistics.
The figure was lower than the 51.1 recorded in September and compared with the preliminary 50.4 figure in a private survey released by British bank HSBC on October 23.
The Chinese economy expanded 7.3 per cent in the third quarter, lower than the 7.5 per cent expansion in the previous three months and the slowest since the depths of the 2008-2009 global financial crisis, the government announced last month.
Beijing's 2014 growth target is about 7.5 per cent, the same as last year, though officials including Premier Li Keqiang have openly stated a slightly slower increase is tolerable as long as the job market remains resilient.
Chinese authorities since April have used a series of limited measures to underpin growth, including targeted cuts in reserve requirements - the amount of funds banks must put aside - and a 500 billion yuan ($88.50 billion) injection into the country's five biggest banks for re-lending.
A slowdown in China's huge property sector is also weighing on overall growth, with economists worrying that a potentially destructive bust in housing prices could dent economic hopes for the Asian powerhouse, a key driver of global and regional growth.
FERGUS RYAN & AAP NOVEMBER 03, 2014 1:30PM
Activity in China’s manufacturing sector has edged up to a three-month high of 50.4 in October, compared to 50.2 in September HSBC has confirmed.
The final reading for October remained unchanged from the flash reading of 50.4 released earlier.
A reading above 50 on the survey points to expansion, while a reading below 50 indicates contraction.
HSBC chief China economist Hongbin Qu said that new orders and new export orders sub-indices saw small downward revisions from their previous flash reading, but both "remained in expansion territory”.
Meanwhile, the employment and inventory sub-indices also saw small upward revisions.
"Overall, the manufacturing sector continued to stabilize in October, however the sequential momentum likely weakened” he said.
Mr Qu said that the economy still shows clear signs of insufficient effective demand.
"We still see uncertainties, given the property downturn as well as the slow pace of global recovery, and expect further monetary and fiscal easing measures in the months ahead.”
On Saturday, China's official purchasing managers index came in at 50.8 for October, according to the National Bureau of Statistics.
The figure was lower than the 51.1 recorded in September and compared with the preliminary 50.4 figure in a private survey released by British bank HSBC on October 23.
The Chinese economy expanded 7.3 per cent in the third quarter, lower than the 7.5 per cent expansion in the previous three months and the slowest since the depths of the 2008-2009 global financial crisis, the government announced last month.
Beijing's 2014 growth target is about 7.5 per cent, the same as last year, though officials including Premier Li Keqiang have openly stated a slightly slower increase is tolerable as long as the job market remains resilient.
Chinese authorities since April have used a series of limited measures to underpin growth, including targeted cuts in reserve requirements - the amount of funds banks must put aside - and a 500 billion yuan ($88.50 billion) injection into the country's five biggest banks for re-lending.
A slowdown in China's huge property sector is also weighing on overall growth, with economists worrying that a potentially destructive bust in housing prices could dent economic hopes for the Asian powerhouse, a key driver of global and regional growth.