China official PMI edges up, HSBC's PMI sinks
China’s factory activity shrank for a third straight month in July to its lowest level in nearly a year as new orders fell, a private survey showed on Thursday, signalling the persistent pressure on the economy has extended into the third quarter.
China’s factory activity shrank for a third straight month in July to its lowest level in nearly a year as new orders fell, a private survey showed on Thursday, signalling the persistent pressure on the economy has extended into the third quarter.
A separate PMI survey released by the National Bureau of Statistics earlier on Thursday showed the index rising to 50.3 in July, from 50.1 in June. Analysts polled by Reuters had expected the PMI to come in at 49.9.
The HSBC Purchasing Managers’ Index (PMI), compiled by Markit Economics Research, fell to 47.7 in July from June’s 48.2. It was the weakest reading since August last year, and matched a preliminary figure published last week.
A reading below 50 indicates a contraction of activity while one above shows expansion.
“With weak demand from both domestic and external markets, the cooling manufacturing sector continued to weigh on employment,” said Hongbin Qu, China chief economist at HSBC.
While keeping the door shut for big stimulus, the government has unveiled a series of polices to boost spending in social housing, urban infrastructure, high-speed rail and energy-saving industries, while offering tax breaks for small firms.