Econintersect: The HSBC/Markit Flash PMI (Purchasing Mangers’ Index) reported a reading of 50.9 for October 2013. This was up from 50.2 in September 
and 50.1 in August. There was generally strength across the board in the sub-component data. The key points from the Markit report:
- Flash China Manufacturing PMI™ at 50.9 (50.2 in September). Seven-month high.
- Flash China Manufacturing Output Index at 51.0 (50.2 in September). Six-month high.
Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
“October’s HSBC Flash China Manufacturing PMI rose to a seven-month high of 50.9 on the back of broadbased modest improvements. This implies that China’s growth recovery is becoming consolidated into 4Q following the bottoming out in 3Q. This momentum is likely to continue in the coming months, creating favorable conditions for speeding up structural reforms.”
Graphs from Markit:
The final PMI reports will be issued around 01 November for the HSBC survey of small and medium sized businesses and the official government survey which covers mostly large and state owned businesses. In September the flash report was significantly higher (50.9) than the final HSBC PMI (50.2), but that was a very unusual occurrence – most of the time the final number is within 0.1 of the preliminary.
Sources:
- PMI hits seven-month high in October (Press release, Markit, 24 October 2013)
- Strong new orders lift China HSBC flash PMI to 7-month high in October (Natalie Thomas, Reuters, 24 October 2013)
