HSBC Flash China PMI for August Declines

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By Trey Thoelcke Published
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HSBC’s preliminary or “flash” reading of its China manufacturing Purchasing Managers’ Index (PMI) for August declined to 47.8. That was a nine-month low, as well as a drop from July’s final reading of 49.3.

Weakness in new orders and shipments was a drag on results. This was the 10th consecutive month that manufacturing conditions in China have remained below the 50-point level that separates contraction from expansion.

Specifics showed that output is now in contraction, compared to expansion in July. The new orders and new export orders subindexes signaled contraction at an accelerating rate. And employment conditions held steady month to month but remained in contraction.

The Chinese government is expected to step up policy easing and/or stimulus after August. Before this PMI data were released, People’s Bank of China Gov. Zhou Xiaochuan said the central bank stood ready for further easing.

China stocks briefly fell following the release of the PMI data, but advanced as the Thursday’s session progressed. The Shanghai Composite index closed 0.25% higher.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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