HSBC/Markit China manufacturing PMI flash estimate for September improved slightly from 47.6 in August to 47.8.
Output contracted by most the in September, from 48.2 to 47.0. Meanwhile, new orders and new exports orders recovered slightly. Inventory build-up appears to be continuing, albeit at a slower pace. That brings some improvement in the new orders minus inventory measure, which improved from –7.9 to –3.4 in September.
Meanwhile, upward pressure in prices remain subdued, with input price at 42.2 and output price at 44.3. Both measures have risen compared with August, but both remain at deflationary territory. There is also a slightly improvement in the employment index.
Source: HSBC/Markit
The flash estimate suggests that the manufacturing sector remains weak in September, although the pace of the slowdown has slowed down compared with August. Despite marginal improvements in some of the components, there is nothing particularly encouraging from this flash estimate.