China – HSBC Flash Manufacturing PMI for October: 50.4 (expected is 50.2) via ForexLive

HSBC Flash China Manufacturing PMI for October:

• expected 50.2
• prior was 50.2

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Key points

Flash China Manufacturing PMIat 50.4 in October (50.2 in September)

• Three-month high

Flash China Manufacturing Output Index at 50.7 in October (51.3 in September)

• Five-month low (i.e the slowest expansion in 5 months)

Data collected 13–21 October 2014

Hongbin Qu, Chief Economist, China & CoHead of Asian Economic Research at HSBC (bolding mine, though):

• “The HSBC China Manufacturing PMI improved to 50.4 in the flash reading for October, up from 50.2 in the final reading for September.
• Domestic as well as external demand showed some signs of slowing although both remained in expansion territory.
• Disinflationary pressures intensified, as both the input and output price indices declined further.
• Meanwhile both employment and inventory indices improved.
• While the manufacturing sector likely stabilized in October, the economy continues to show signs of insufficient effective demand.
• This warrants further policy easing and we expect more easing measures on both the monetary as well as fiscal fronts in the months ahead.”

posted via ForexLive