Slowest expansion of output in five months
The HSBC China Manufacturing PMI, improved to 50.4 in the flash reading for October, up from 50.2 in September. Domestic as well as external demand showed some signs of slowing although both remained in expansion territory. Disinflationary pressures intensified, as both the input and output price indices declines futher. Meanwhile both employment and inventory indices improved. While the manufacturing sector likely stabilized in October, the economy continues to show signs of insufficient effective demand. This warrants further policy easing and we expect more easing measures on both the monetary as well as fiscal fronts in the months ahead.
Source: HSBC Purchasing Managers’ Index™ Press Release
Embargoed until: 09:45 (Beijing), 23 October 2014