- expected 49.6 (this was the ‘flash’),
- prior was 50.5
- first deterioration of operating conditions in China’s manufacturing sector since July
- Production levels continued to increase in January, extending the current sequence of expansion to six months
- The rate of growth eased to a marginal pace
- reports of relatively subdued client demand that stemmed from fragile economic conditions
- Total new business was relatively unchanged from the previous month, following a five – month sequence of growth
- New export orders declined for the second month running in January, with surveyed firms mentioning weaker demand in a number of key export markets
- Employment levels at Chinese manufacturers fell for the third consecutive month in January
- Quickest reduction of payroll numbers since March 2009
Hongbin Qu, Chief Economist, China & Co – Head of Asian Economic Research at HSBC said:
“A soft start to China’s manufacturing sectors in 2014, partly due to weaker new export orders and slower domestic business activities during January. Policy makers should pay attention to downside risks and pre-emptively fine-tune policy to steady the pace of growth if needed. “
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AUD/USD was a bit soft leading into the data release, already ticking lower. It was marked down 20-odd points on the data, finding buying support at 00/10
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Here’s more, from Bloomberg
