China Manufacturing Activity Hits Four Month High

Activity in China’s key manufacturing sector recovered strongly in August, a preliminary survey of factory managers showed on Thursday, helped by a rebound in new orders.

The HSBC flash manufacturing Purchasing Managers Index (PMI) hit a four-month high of 50.1 in the month from a final reading of 47.7 in July, moving above the 50 threshold that demarcates expansion of activity from contraction.

“China’s manufacturing growth has started to stabilize on the back of modest improvements of new business and output. This is mainly driven by the initial filtering through of recent fine-tuning measures and companies’ restocking activities, despite the continuous external weakness,” Hongbin Qu, chief economist, China & co-head of Asian Economic Research at HSBC said.

“We expect further filtering-through, which is likely to deliver some upside surprises to China’s growth in the coming months,” he added.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza