Chinese manufacturing data continued to expand in January but the data marked a five-month low, according to a government report released earlier today. China’s official purchasing managers index, released by the China Federation of Logistics and Purchasing, leveled at 52.9 in January from a score of 53.9 in December.
A score above 50 in the PMI data indicates expanding growth while score below 50 signals a contraction in that area. The PMI manufacturing data failed to surpass economic forecasts that were expecting a 53.5 score for the month.
HSBC, in conjunction with Markit, also released their purchasing managers index today and showed that China’s manufacturing edged higher in January to 54.5 from a 54.4 score in December. The increasing PMI score signaled continued improvement in manufacturing, according to the report.
Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC commented on the latest report: “China kick-started the New Year with another upbeat manufacturing PMI reading, following the stronger-than-expected 4Q GDP growth release. The strong growth momentum leaves room for Beijing to fully focus on checking liquidity and inflation pressure. Quantitative tightening in the form of reserve requirement ratio hikes will remain the most effective policy tools.”
Data Summary:
Official China PMI: JAN – 52.9 vs. DEC – 53.9, CONSENSUS – 53.5
HSBC China PMI: JAN – 54.5 vs. DEC – 54.4
Article by FxNewsChina – China Forex News
