Almost good news out of China this morning with the release of the HSBC Flash China Manufacturing PMI which beat expectations of 49.5 with a print of 49.8. However the index still lingers in the contraction zone below 50.
As you’d expect with a print so close to the expansion/contraction line of 50 the inner break of individual sectors is mixed.
Commenting on the outcome Hongbin Qu, Chief Economist, China & Co Head of Asian Economic Research at HSBC said:
“Today’s data suggest that the manufacturing slowdown is still ongoing amidst weak domestic demand. More monetary and fiscal easing measures will be needed to support growth in the coming months.”
More easing, Shanghai stocks are going to love that.