China manufacturing grows at slowest pace for months
Output at factories slows sharply this month after reaching a two-year high in January
The mainland's manufacturing activity grew this month at the slowest pace in four months, hitting optimism about a recovery in the world's second-largest economy, a private survey has shown.
The HSBC flash purchasing managers' index (PMI) for China retreated from a two-year high of 52.3 in January to 50.4 in February, according to a preliminary survey issued by HSBC and Markit Economics yesterday. The figure also lagged behind the median estimate of 52.2 of 11 analysts surveyed by Bloomberg.
Qu Hongbin, chief China economist at HSBC, said the flash PMI was above the threshold of 50, which indicates an expansion, for the fourth consecutive month.
"The Chinese economy is still on track for a gradual recovery," Qu said.
He added that the underlying strength of the economic recovery remained intact as indicated by expanding employment and credit growth, despite the moderation of February's figure.
Mainland banks extended 1.07 trillion yuan (HK$1.32 trillion) in new loans in January, more than double December's figure, the People's Bank of China announced earlier this month.
The readings indicate that the momentum of the mainland's economic recovery in the first quarter remains weak