Econintersect: The HSBC Flash PMI reading for September 2013 has risen to 51.2, up from 50.1 in August. The two-month rise from July’s eleven month low of 47.7 indicates a potentially strong rebound from the slowing economy that China experienced in the first half of 2013. The latest reading is significantly above the level of 50 which is the demarcation between expansion and contraction.
Especially encouraging was the surge of new orders to 50.8, up from 47.2 in August and the first reading above 50 in ten months. Work backlogs also continued higher to 51.9, but employment still remained below 50.
Hongbin Qu, Chief Economist, China and Co-Head of Asian Economic Research at HSBC provided the following comment:
“The HSBC Flash China Manufacturing PMI rose to a six-month high in September, adding further evidence to China’s ongoing growth rebound. The firmer footing was supported by simultaneous improvements of external and domestic demand conditions. We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand. This will create more favourable conditions to push forward reforms, which should in turn boost mid- and long-term growth outlooks.”
The official government PMI survey results and the final HSBC data will be released in one week.
Sources:
- Operating conditions improve modestly in September (HSBC Purchasing Manager’ Index Press Release, 23 September 2013)
- China September HSBC PMI hits six-month high of 51.2, adds to economic momentum (Koh Gui Qing, Reuters, 23 September 2013)
