China’s May Flash HSBC PMI Hits Five-Month High

The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) rose to 49.7 in May from April’s 48.1, hitting a five-month high.

"The improvement was broad-based with both new orders and new export orders back in expansionary territory," says Hongbin Qu, chief China economist at HSBC. "Dis-inflationary pressures also eased over the month and output prices increased for the first time since November 2013."

"Some tentative signs of stabilization are emerging, partly as a result of the recent mini-stimulus measures and lower borrowing costs. But downside risks to growth remain, particularly as the property market continues to cool," he adds.

The employment sub-index fell further to 47.3. Qu says it implies that this month’s uptick in sentiment has not yet filtered through to the labor market.

China Expert network
 
China Expert network

LEAVE A REPLY