China August HSBC Flash PMI Slips to Three-Month Low
Growth in China’s vast factory sector slowed to a three-month low in August as output and new orders moderated, a preliminary private survey showed on Thursday, reinforcing concerns about increasing softness in the economy.
The HSBC/Markit Flash China Manufacturing Purchasing Managers’ Index (PMI) fell to 50.3 from July’s 18-month high of 51.7, missing a Reuters forecast of 51.5.
“Today’s data suggest that the economic recovery is still continuing but its momentum has slowed again,” said Hongbin Qu, chief economist for China at HSBC.
Most Asian stock markets, including Hong Kong and China, extended early losses after the PMI survey while the Australian dollar fell.
A sub-index measuring new orders, a gauge of demand at home and abroad, fell to a three-month low of 51.3. The sub-index for output also dropped to a three-month low in August.
Employment fell at a faster pace than in July, indicating more layoffs in the manufacturing sector.
In a bid to re-invigorate the economy, China has relaxed monetary policy since April by easing controls in the property market, accelerating the construction of some infrastructure works, and relaxing reserve requirements for small banks to boost lending.
Source: NYT
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