China Dec HSBC flash PMI slips to three-month low of 50.5

BEIJING Mon Dec 16, 2013 10:31am IST

A worker operates a machine to cut a pipeline at a factory in Qingdao, Shandong province November 29, 2013. REUTERS/China Daily/Files

A worker operates a machine to cut a pipeline at a factory in Qingdao, Shandong province November 29, 2013.

Credit: Reuters/China Daily/Files

Related Topics

BEIJING (Reuters) - Growth in activity in China's vast factory sector slowed to a three-month low in December as reduced output offset a pickup in new orders, a preliminary private survey showed on Monday, in line with other recent data pointing to a resilient but slowing economy.

The flash Markit/HSBC Purchasing Managers' Index (PMI) fell to 50.5 from November's final reading of 50.8, but for a fifth consecutive month remained above the 50 line which separates expansion of activity from contraction.

Given the approaching year-end holiday season, the flash PMI covers only the short period from December 5 to 12. The final PMI will be released on January 2.

Growth in both new orders and export orders grew at a faster rate in the period surveyed, while sub-indexes measuring employment and stocks of purchases showed faster rates of decrease.

"The December HSBC Flash China Manufacturing PMI reading slowed marginally from November's final reading," said Hongbin Qu, chief economist for China at HSBC, in a comment accompanying the PMI.

"But it still stands above the average reading for 3Q, implying that the recovering trend of the manufacturing sector starting from July still holds up. As a result, we expect China's GDP growth to stabilise at around 7.8% yoy in 4Q."

Many economists have said China's economy is likely to show weaker momentum in the final three months of this year after a rebound between July and September, due to slowing credit growth and a fall off in restocking demand.

Data earlier in the month showed growth in China's factory output and investment eased slightly in November, though retail sales grew at their strongest rate this year, suggesting the economy is on track to achieve the government's 7.5 percent growth target this year.

Beijing has made it clear that it would accept a slower growth rate while it pushes ahead with economic reforms to wean the growth away from investment and export towards consumption.

The leadership pledged to maintain stable economic policies to achieve reasonable economic growth in 2014 while forging ahead with reforms, as they wrapped up a closed-door meeting on Friday.

The annual Central Economic Work Conference did not set a target for 2014 GDP growth, with state media reporting that the government would "maintain appropriate growth in gross domestic product."

(Reporting by Jonathan Standing; Editing by Kim Coghill)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage