Flash PMI brings cheer to exporters
Post Date: 24 Sep 2014 Viewed: 315
A Chinese manufacturing gauge unexpectedly increased this month, suggesting export demand is helping the economy withstand a property slump.
The preliminary Purchasing Managers Index from HSBC Holdings Plc and Markit Economics was at 50.5, matching the highest estimates in a Bloomberg News survey of analysts and up from August's final reading of 50.2.
Tuesday's report contrasts with August data that showed weaker growth and may ease pressure for stimulus that is broader than the limited liquidity injections and expedited spending on railways that the government has enacted.
With the euro region and Japan battling to shore up expansions, a trough in China's slowdown would aid a patchy global recovery.
The rebound will "come as a major relief to markets after numerous signs suggesting further downward pressure on the manufacturing sector," said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong. "The positive surprise should put some upward pressure on foreign exchanges and rates in Asia."
Qu Hongbin, chief China economist at HSBC in Hong Kong, said in a statement: "Economic activity in the manufacturing sector showed signs of stabilization in September. Overall the data still point to modest expansion. The property downturn remains the biggest downside risk to growth. We continue to expect more monetary easing from the PBOC in order to steady the recovery."
Measures of new orders and new export orders increased at a faster rate, the report showed.
Robust export demand is helping China weather a property slump. China's trade surplus climbed to a record in August as exports rose on the back of increased shipments to the US and Europe. New home prices fell in all except two of the 70 cities monitored by the government last month, the statistics bureau said last week, the most since January 2011, when the government changed the way it compiles the data.