A new growth recovery accompanied with a slightly increase in Manufacturing Outputs (50.3) and new orders, positioned the flash PMI for February into 50.1 taking it into a four-month high.
Commenting on the Flash Reading of the PMI, HOngbin Qu, Chief Economist of HSBC said:
“The HSBC China Manufacturing PMI improved slightly to 50.1 in the flash reading for February, up from 49.7 in January. Domestic demand firmed while new export orders contracted for the first time since April 2014. Both input and output prices remain in contraction. Today’s data point to a marginal improvement in the Chinese manufacturing sector going into the Chinese New Year period in February. However, domestic economic activity is likely to remain sluggish and external demand looks uncertain. We believe more policy easing is still warranted at the current stage to support growth.”
