Manufacturing is slowing in China according to a preliminary gauge of PMI by HSBC index.
The “flash” version of the HSBC/Markit China manufacturing Purchasing Managers’ Index slipped to 50.4, compared to last month 50.9 The result, which marked a two-month low for the PMI, was also well below the official government version of the PMI, which hit 51.4 in October.
Among the sub-indexes, new export orders slid below the 50 mark dividing growth from contraction, while overall new orders rose, but at a slower rate than in October.
The closely watched employment sub-index also showed a decrease after indicating growth the previous month.
The flash PMI generally includes 85% to 90% of the total responses used in the final edition of the report.
Economists not so concerned
In comments accompanying the data, HSBC chief China economist Hongbin Qu said: “China’s growth momentum softened a little in November ... due to the weak new export orders and slowing pace of restocking activities. That said, this is still the second-highest PMI reading in seven months.”
Qu also cited a slowing in the rise of input prices, with output prices swinging to a decline, as suggesting that “muted inflationary pressures should enable Beijing to keep policy relatively accommodative to support growth.”
Source: Marketwatch
