Chinese PMI improved to 51.9 from 49.4 last month. The key points from the HSBC report:
- Output rose for the first time in three months.
- Overall new business increased, but new export orders continued to fall.
- Average input costs rose markedly.
Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
“The headline HSBC China Manufacturing PMI retuned to expansionary territory at a three-month high of 51.9, from 49.4 one month previously. This reconfirmed our long-held view that China is moderating rather than melting down. Domestic demand will be resilient to uphold around 9% GDP growth in 2H and 2011, while external demand is more likely to turn worse in the coming months.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.