HSBC Purchasing Managers' Index -- Official Press Release

Chinese manufacturers saw a further improvement in overall operating conditions in August. That said, the pace of improvement eased to a fractional pace as both output and new order growth slowed and job shedding in the sector persisted. Meanwhile, input costs declined for the first time in three months while increased competition for new business led manufacturers to reduce their selling prices.

After adjusting for seasonal factors, the HSBC Purchasing Managers’ Index™ (PMI™)–a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy–posted at 50.2 in August, down from July’s 18-month high of 51.7. This signalled only a fractional pace of improvement that was the weakest in three months.

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