Manufacturing conditions in China fell to a three-month low in December, according to the HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI). The index dropped to 50.5, from 50.8 in November.
Despite the fall, growth in new orders increased to a nine-month high, while output also increased, albeit at a slower rate. New exports orders rose, at a faster rate. Employment decreased, at a faster rate.
“The December HSBC Flash China Manufacturing PMI reading slowed marginally from November’s reading. But it still stands above the average reading for 3Q, implying that the recovering trend of the manufacturing sector starting from July still holds up. As a result we expect China’s GDP growth to stabilise at around 7.8 per cent year-on-year in 4Q,” says Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research.
The Flash PMI is the earliest available indicator of operating conditions in China. It is published around a week before the final PMI data is released and is based on around 85 percent to 90 percent of total PMI survey responses.
The Flash China Manufacturing Output Index hit a two-month low in December. The index fell to 51.8, from 52.2 in November.