China’s HSBC manufacturing PMI report is out and it was better than expected.The headline number climbed to a two-year high of 52.3, up from 51.5 in December.
Economists were looking for a reading of 52.0.
Here are the key points from Markit:
- Output expands at the quickest pace since March 2011
- Solid rise in total new orders
- Purchasing activity increases at the fastest rate in two years
From HSBC’s Hongbin Qu:
“A higher reading of January final manufacturing PMI implies that China’s manufacturing activity is gaining further steam on the back of improving domestic conditions. We see increasing signals of a sustained growth recovery in the coming months: the steady investment growth led by infrastructure projects, the improving labour market conditions boosting consumer spending, and the ongoing re-stocking process to lift production growth.”
This contrasts with China’s official PMI, which unexpectedly fell to 50.4, missing economists’ expectation for a reading of 51.0.