The official data regarding the January’s PMI was released, here the highlights of the report:
Chinese manufacturers saw a fractional deterioration in operating conditions at the start of 2015. Although output rose slightly and new orders broadly stabilised, staffing levels were cut from 15th consecutive month. Talking about costs, lower raw materials led to the steepest reduction in average input since march 2009.
The PMI according to the HSBc and Markit Economics posted at 49.7 slightly lower than the forecast of 49.8, but fractionally upper than the 49.6 shown in December. it represents a renewed expansion on the manufacture in China, representing the first rise on the figures for first time in the last three months.
Meanwhile the official figures by the NBS of China shown a 49.8 reaffirming the expansion on the manufacture across the country.
HSBC’s analyst Hongbin Qu, commented on the figures “The HSBC China Manufacturing PMI rose to 49.7 in the final reading for January, from 49.6 in December, and revised down from the flash reading of 49.8. Both new orders and new export orders saw downward revisions, but still signalled marginal expansion. We think demand in the manufacturing sector remains weak and more aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth.”