HSBC final China PMI edges up to 50.2, as domestic demand stays subdued
September reading falls short of preliminary estimate, but export orders make up slack
China’s factory sector grew in September after rising foreign orders made up for a subdued domestic market, a private survey showed, suggesting Asia’s economic powerhouse is starting to turn the corner, though a firm rebound remains elusive.
The final HSBC purchasing managers’ index (PMI) edged up to 50.2 in September from August’s 50.1, although that was below last week’s flash reading of 51.2, with domestic orders proving to be weaker than preliminary estimates suggested.
New export orders picked up the slack, climbing above the 50-point mark – which separates expansion from contraction – to 50.7, from 47.2 in August. After seasonal adjustments, however, the expansion was slight, HSBC said on Monday.
Still, the data should support financial markets and comfort investors eager to see China’s economy stabilise, even if the revival is likely feeble and perhaps even short-lived.
Qu Hongbin, an HSBC economist, said stronger manufacturing growth was driven by firms replenishing their stocks, albeit slowly.
“Growth is bottoming out on Beijing’s mini-stimulus,” Qu said, noting however that growth in domestic demand was unchanged from August.