CHINA HSBC/Markit Flash reading for manufacturing PMI for July 52.0
- 18-month high
- expected 51.0
- prior was 50.7
AUD pops higher on the better than expected result out of China (hitting the first levels of larger sellers)
Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC:
- The HSBC China Manufacturing PMI rose further to 52.0 in the flash reading for July.
- Both new orders and new export orders expanded at a faster pace than in June.
- The employment and prices sub-indices also improved.
- Meanwhile, stocks of finished goods contracted at a slower pace.
- Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through.
- We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery.”