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.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
