Asia Economy
Chinese manufacturing activity rises to 18-month high in July
By Finfacts Team
Jul 24, 2014 - 2:02 AM

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A flash PMI (purchasing managers' index) measure of Chinese manufacturing activity rose to an 18-month high in July, in a sign that the government's efforts to stimulate the economy are having an impact.

The flash China Manufacturing PMI at 52.0 in July (50.7 in June) was at an 18-month high while the flash China Manufacturing Output Index at 52.8 in July (51.8 in June) was at a 16-month high.

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. July final PMI data will be released on 1 August 2014.

Hongbin Qu, chief economist, China & Co-head of Asian Economic Research at HSBC said: “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.”

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