More evidence of the Chinese economy slowing this afternoon, with the HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) for December registering another fall, decreasing to 49.5 from 50.0 in November – a seven month low.
The result missed analyst’s expectations, with economists polled by Bloomberg expecting the flash PMI to fall to 49.8.
The Flash China Manufacturing Output Index rose marginally to 49.6 in December, up from 49.5 in November – a two-month high.
Commenting on the result, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
“The HSBC China Manufacturing PMI dropped to a seven-month low of 49.5 in the flash reading for December, down from 50.0 in November. Domestic demand slowed considerably and fell below 50 for the first time since April 2014. Price indices also fell sharply. The manufacturing slowdown continues in December and points to a weak ending for 2014. The rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months.”
