China manufacturing PMI dips to three-month low

HONG KONG – The HSBC Flash China Manufacturing PMI has come in  at 50.3 in August (51.7 in July), a three-month low, as was the Flash China Manufacturing Output Index - at 51.3 (52.8 in July). Manufacturing output, new ordrs and new export orders inAugust all increased, but at a slower rate. Both output and input prices, together with stocks of purchases and stocks of finished goods, all decreased.

Hongbin Qum HSBC Chief Economist, China, and Co-Head of Asian Economic Research at HSBC, said the data suggests that while China’s economic recovery is continuing, its momentum has slowed. Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued path.

“We think more policy support is needed to help consolidate the recovery, he said. “Both monetary and fiscal policy should remain accommodative until there is a more sustained rebound in economic activity.”  www.hsbc.com (ATI).