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Orders boost Flash PMI

24/10/2013 11:57 (176 Day 11:16 minutes ago)

The FINANCIAL -- China’s manufacturing sector hit a seven-month high in October, according to the HSBC Flash China Manufacturing Purchasing Managers’ Index. The index rose to 50.9, from 50.2 in September.

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Businesses reported that new orders and backlogs of work both increased at a faster rate. New export orders also rose, while input and output prices were higher. However, employment levels fell, albeit at a slower rate.

“October’s HSBC Flash China Manufacturing PMI™ rose to a seven-month high of 50.9 on the back of broad-based modest improvements. This implies that China’s growth recovery is becoming consolidated into 4Q following the bottoming out in 3Q. The momentum is likely to continue in the coming months, creating favourable conditions for speeding up structural reforms,” Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research, said.

The Flash China Manufacturing Output Index also improved, rising to a six-month high of 51.0, from 50.2 in September.

The Flash PMI is based on a survey of purchasing executives in China. This early indicator is based on around 85-90 per cent of total PMI monthly survey responses. An index figure above 50 signals expansion, while below 50 signals contraction.

 

 

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