China Manufacturing Loses Momentum, But Stays in Expansion

September 1st, 2014
in News, econ_news, syndication

breaking-news-130px7Econintersect:  The official PMI (Purchasing Managers' Index) reported a reading ot 51.1 in August 2014, down from 51.7 in July.  The result was slightly less than the expected value of 51.2.  The second PMI report was just barely above the 50 reading which marks the boundary between expansion and contaction.  The HSBC/Markit survey reported a final reading of 50.2, a sharp decline from July when it also came in at 51.7.

Follow up:

It is not uncommon for the two PMI results to give different readings.  The official government survey covers large, mostly government owned enterprises while HSBC surveys medium and small sized companies which are largely privately owned.  The HSBC survey is considerd to be more sensitive to China's exports which have been reported to be relatively strong recently.



Hongbin Qu, Chief Economist, China and Co-Head of Asian Economic Research at HSBC commented on the HSBC/Markit assessment of Chinese manufacturing:

"The HSBC China Manufacturing PMI eased slightly to 50.2 in the final reading for August from the flash reading of 50.3.The revisions were mixed, with upward revision to the new export orders and output sub-indices but downward revisions to the employment and input prices indices. Although external demand showed improvement, domestic demand looked more subdued. Overall, the manufacturing sector still expanded in August, but at a slower pace compared to previous months. We think the economy still faces considerable downside risks to growth in the second half of the year, which warrant further policy easing to ensure a steady growth recovery."


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved