China's manufacturing dipped an eight-month low in March in another signal of slowing growth in the world's No. 2 economy.
The flash China manufacturing PMI (purchasing managers' index) at 48.1 in March (48.5 in February) fell to an eight-month low while the China Manufacturing Output Index at 47.3 in March (48.8 in February) dipped to an eighteen-month low.
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. March final PMI data will be released on 1 April 2014.
Hongbin Qu, chief economist, China & co- head of Asian Economic Research at HSBC said: "The HSBC Flash China Manufacturing PMI reading for March suggests that China’s growth momentum continued to slow down. Weakness is broadly-based with domestic demand softening further. We expect Beijing to launch a series of policy measures to stabilize growth. Likely options include lowering entry barriers for private investment, targeted spending on subways, air-cleaning and public housing, and guiding lending rates lower."
The HSBC China Report on Manufacturing is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 420 manufacturing companies. The flash estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data.
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