Asia Economy
China's manufacturing contracted in February
By Finfacts Team
Feb 20, 2014 - 6:40 AM

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China's manufacturing contracted in February according to a flash purchasing managers’ index (PMI), which dropped to a seven-month low of 48.3 in February, from 49.5 the previous month. The period included the Lunar New Year shutdown.

The HSBC Flash China Manufacturing PMI is published on a monthly basis ahead of final PMI data, making the HSBC PMI the earliest available indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data. February final PMI data will be released on 3 March 2014.

Hongbin Qu, chief economist, China & co-head of Asian Economic Research at HSBC said: “February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year.”

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