Original post: 01 February 2015, 1:59 am EST
Updated: 02 February 2015, 1:49 am EST
Econintersect (update): The final HSBC Manufacturing PMI (Purchacing Managers' Index) recorded it's second month in a row below 50, with a reading of 49.7, up slightly from December 2014 value of 49.6. More for this update in new article here.
Econintersect: The official PMI (Purchasing Managers' Index) reported a reading of 49.8 in January, just below the 50 mark which is the demarcation between expansion and contraction. This was the first monthly contraction in 2 1/2 years and was not unexpected: 10 of 11 economists in a Reuters' poll expected a reading above 50 with the consensus being 50.2. The December number was 50.1. Another PMI survey taken by HSBC and reported by Markit had a preliminary ("flash") value of 49.6 for January, reported last week. The final reading for that survey is due 02 February 2015.
Following a strong recovery from the Great Recession where the manufacturing PMI rose to 56, the index has been in a declining trend for the five years since. Sources quoted by Reuters indicated they thought monetary loosening by China was becoming increasingly likely with the latest data.
Update: 02 February 2015, 1:49 am EST. See new article.
- China factory sector jolts by shrinking in January (Koh Gui Qing, Reuters, 31 January 2015)
- HSBC Flash China Manufacturing PMI (Press Release, Markit, 23 January 2015)
- China Manufacturing PMI (Trading Economics, 01 February 2015)
- Update: HSBC China Manufacturing PMI: Operating conditions deteriorate fractionally in January (Press Release, Markit, 02 February 2015)
China: HSBC PMI Still Indicating Contraction (GEI News, 02 May 2012)
- China: Flash PMI Up Slightly, Preliminary Reading (GEI News, 21 September 2012)