China flash PMI ticks up on rising production, new orders

HONG KONG - The private sector HSBC/Markit flash manufacturing PMI estimate rose to 50.9 for October (consensus: 50.4), up from a disappointing 50.2 in September. BBVA Bank says the outturn, while preliminary, may suggest that growth momentum is continuing into the fourth quarter, after Q3 GDP growth came in at a robust 7.8%. “Nevertheless, questions remain about the sustainability of the growth pickup given signs of a moderating trend in September activity indicators, and market jitters of signs of monetary tightening,” BBVA says. “Given improving external demand and the Government’s current growth targets, we expect full-year growth of 7.7% in 2013 and 7.6% in 2014.” www.bbvaresearch.com (ATI).