FXstreet.com (San Francisco) - The HSBC Manufacturing Purchasing Managers Index (PMI) remains in contractionary territory, having posted a 49.3 reading in July from a revised 48.2 in June, signaling only a marginal deterioration in Chinese manufacturing sector operating conditions, according to Markit Economics. The month-on-month increase in the index was the largest in 21 months, as manufacturing output rose for first time in five months.
“Final manufacturing PMI confirmed only a modest improvement of manufacturing conditions thanks to the initial effect of the earlier easing measures,” Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC explains. “But this is far from inspiring, as China’s growth slowdown has not been reversed meaningfully and downside pressures persist with external markets continuing to deteriorate. We still expect Beijing to step up policy easing in the coming months to support growth and employment.”
Earlier in the session, China reported a third straight month of lower readings in the NBS Manufacturing PMI at 50.1.
“Final manufacturing PMI confirmed only a modest improvement of manufacturing conditions thanks to the initial effect of the earlier easing measures,” Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC explains. “But this is far from inspiring, as China’s growth slowdown has not been reversed meaningfully and downside pressures persist with external markets continuing to deteriorate. We still expect Beijing to step up policy easing in the coming months to support growth and employment.”
Earlier in the session, China reported a third straight month of lower readings in the NBS Manufacturing PMI at 50.1.
