HSBC final PMI for China edges down from October
Chinese manufacturing activity expanded at a slightly slower rate last month, supported mainly by domestic demand, a private survey for HSBC reported on Monday.
HSBC’s final purchasing managers index (PMI) stood at 50.8, the second-highest reading in eight months, despite easing marginally from October’s 50.9, the bank said.
However, it is well up from the preliminary figure of 50.4 that HSBC gave on November 21.
The index tracks manufacturing activity in China’s factories and workshops and is a closely watched gauge of the health of the economy. A reading above 50 indicates growth, while anything below signals contraction.
The final PMI reading provided further evidence that the world’s second-largest economy is gaining momentum, although analysts have warned that uncertainties remain.
“China’s manufacturing sector kept relatively steady growth momentum in November,” HSBC economist Qu Hongbin said.
Output growth was bolstered by quicker expansion of new business, largely driven by domestic demand, according to the survey.
But Qu said policies should be kept accommodative, given “modest inflationary pressures” as restocking activities slowed slightly and companies cut jobs last month, reversing a slight expansion of payroll numbers in October.
The HSBC release came a day after China’s National Bureau of Statistics said its official PMI for November came in at 51.4, unchanged from October and the highest since April last year.