China's HSBC Manufacturing PMI Jumps To A 2-Year High

hsbc china pmi

Photo: Markit

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.

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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.

Click here for our LIVE global PMI scorecard >

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