HSBC/Markit Flash China manufacturing PMI shows first expansion in a year in November22 November, 2012, 10:05. Posted by Zarathustra
HSBC/Markit China manufacturing PMI posts its first above-50 reading for the in more than a year, flash estimate shows.
Flash PMI rose to 50.4 in November from 49.5 in October, indicating modest expansion, driven largely by the increase in output, which rose from 48.2 to 51.3. New order fell from 51.2 to 50.2, but new export orders jumped to 52.4 after staying below 50 for 6 consecutive months. Finished goods inventory rose from 48.4 to 49.5, which brings the new order minus inventory measure from 2.8 to 0.7.
This is the first above-50 headline reading for HSBC/Markit PMI after staying below 50 for 12 consecutive months, suggesting the first month-on-month expansion of manufacturing in 12 months after seasonal adjustment. This confirms everyone’s strong conviction that economic activities are picking up somewhat towards the end of the year, although we remain far less convinced that this is leading to a sustained recovery.