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.”