HSBC China Aug. Flash PMI at 47.8 Vs 49.3 Final July PMI Reading
China’s manufacturing may contract at a faster pace in August, a private survey indicated.
The 47.8 preliminary reading for a purchasing managers’ index released by HSBC Holdings Plc and Markit Economics today compares with a final 49.3 for July. A number below 50 indicates contraction. The gauge hasn’t shown an expansion since the October reading.
China’s economic slowdown may extend into a seventh quarter after industrial output and new loans in July missed estimates and export growth collapsed to 1 percent. Deutsche Bank AG, Bank of America Corp. and Morgan Stanley this month cut their forecasts for the nation’s expansion in 2012.
Today’s preliminary reading, called the Flash PMI, is based on 85 percent to 90 percent of responses to a survey of more than 420 companies, according to HSBC. The government’s own monthly index, due to be released on Sept. 1, had a July reading of 50.1, the weakest in eight months.
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