Asia Economy
Growth in China's manufacturing slowed to three-month low in August
By Finfacts Team
Aug 21, 2014 - 9:57 AM

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Growth in China's manufacturing sector slowed to a three-month low in August as output and new orders moderated, a flash PMI survey (purchasing managers' index) survey showed on Thursday.

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

Hongbin Qu, chief economist, China & Co- Head of Asian Economic Research at HSBC said: "The HSBC Flash China Manufacturing PMI moderated to 50.3 in August, down from 51.7 in July. Both domestic and external new orders rose at slower rates compared to the previous month. Meanwhile, disinflationary pressure returned as input and output prices contracted over the month. Today's data suggest that the economic recovery is still continuing but its momentum has slowed again.

Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued path. We think more policy support is needed to help consolidate the recovery. Both monetary and fiscal policy should remain accommodative until there is a more sustained rebound in economic activity."

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