China HSBC PMI came in at 50.2 in September.
This missed expectations for 51.2, and is below the Flash PMI reading of 51.2. Manufacturing barely nudged higher from a reading of 50.1 in August.
The report showed “new business from overseas increased for the first time in six months (albeit marginally), with panellists citing stronger demand from client bases in Europe and the US.”
HSBC Flash PMI out earlier this month, jumped to 51.2 in September, with a broad based improvement in manufacturing. There was a noticeable improvement in new export orders.
A reading below 50 indicates contraction.
“The September HSBC China Manufacturing PMI edged up slightly from August. New orders remained flat from the previous month, while external demand improved,” said HSBC China chief economist, Hongbin Qu, in a press release. “Manufacturers restocking process continued but remained relatively slow. Growth is bottoming out on Beijing’s mini-stimulus. We expect continuous policy efforts to sustain the recovery.”
The recent strength in the industrial production data is also positive for manufacturing. And an improvement in both the HSBC and official PMI numbers (the latter due on Tuesday) will add to signs that China’s economy is stabilizing.
Here’s a look at the trajectory of official and HSBC PMI:
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