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20 Feb 2014
China's HSBC/Markit Flash PMI collapses
FXStreet (Bali) - China's HSBC/Markit Flash PMI reading for February came at 48.3 vs 49.5 expected and 49.5 prior. The data is a negative input for the Aussie as it brings back fears of a major economic slowdown in China.
Commenting on the China HSBC/Market PMI, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said: "February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities."
"The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year", Qu added.
Commenting on the China HSBC/Market PMI, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said: "February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities."
"The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year", Qu added.