Econintersect: For the second month in a row (and the second month in 2014) the “Flash” (preliminary) HSBC Manufacturing PMI (Purchasing Managers’ Index) came in with a reading above 50, indicating an expanding sector. For July the reading is 52.0, up strongly from the final reading of 50.7 in June. The new reading is the highest in 19 months. Output, new orders and new export orders all advanced, but employment continues to decline, although at a slower rate.
Hongbin Qu, Chief Economist, China and Co-Head of Asian Economic Research at HSBC commented on the new data:
“The HSBC China Manufacturing PMI rose further to 52.0 in the flash reading for July. Both new orders and new export orders expanded at a faster pace than in June. The employment and prices sub-indices also improved. Meanwhile, stocks of finished goods contracted at a slower pace. Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through. We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery.”
- HSBC Flash China Manufacturing PMI (Press Release, Markit, 24 July 2014)