Chinese manufacturing is once again treading water, barely above contraction according to the HSBC Flash China Manufacturing PMI.
- Flash China Manufacturing PMI™ at 50.3 in August (51.7 in July). Three-month low.
- Flash China Manufacturing Output Index at 51.3 in August (52.8 in July). Three-month low.
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Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said …
“The HSBC Flash China Manufacturing PMI moderated to 50.3 in August, down from 51.7 in July. Both domestic and external new orders rose at slower rates compared to the previous month. Meanwhile, disinflationary pressure returned as input and output prices contracted over the month. Today’s data suggest that the economic recovery is still continuing but its momentum has slowed again. Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued path. We think more policy support is needed to help consolidate the recovery. Both monetary and fiscal policy should remain accommodative until there is a more sustained rebound in economic activity.”
Mish Translation of Comments
China PMI has gone nowhere. The last uptick Qu raved about is now in the ashcan. Thus, Qu wants more “policy support” AKA loose money from the China central bank to “consolidate the recovery“.
Mike “Mish” Shedlock