China's manufacturing sector operating conditions continue to improve, albeit at sharply reduced rate, says HSBC.
HSBC's flash manufacturing purchasing managers' index (PMI) fell to 51.5 from January's final reading of 54.5, a 7-month low. Meanwhile, the flash manufacturing output Index fell to 51.8 from January's 56.5, also a 7-month low.
“Flash PMI data point to a meaningful slowdown in the industrial sector in February. Chinese New Year Holiday may be a factor but not the only reason. It also implies that quantitative tightening is starting to filter through yet more still needs to be done to check inflation,” says Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC.
Launched yesterday, the HSBC Flash China Manufacturing PMI is published on a monthly basis approximately one week before final PMI data are released, 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.
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