HSBC China Manufacturing Purchasing Managers Index (PMI) for January: 49.7 (flash was 49.8)

HSBC China Manufacturing Purchasing Managers Index (PMI) for January: 49.7

• Flash was 49.8
• prior was 49.6

Key points:

• Output increases for first time since October, albeit fractionally
• Employment levels fall at weakest rate in 15 months
• Average input costs fall at sharpest pace since March 2009

Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC:

• “The HSBC China Manufacturing PMI rose to 49.7 in the final reading for January, from 49.6 in December, and revised down from the flash reading of 49.8.
• Both new orders and new export orders saw downward revisions, but still signalled marginal expansion.
• We think demand in the manufacturing sector remains weak and more aggressive monetary and fiscal easing measures will be needed to prevent another sharp slowdown in growth.”