China Manufacturing Shows Recovery

China’s factories appear to be on the mend this month, according to an early gauge of activity in the country’s all-important manufacturing sector.
HSBC said its “flash” measure of sentiment among manufacturing purchasing managers was 49.7 in May. The rebound from the index’s final reading of 48.1 in April was sharper than analysts had expected.

While the index showed improvement, any number under 50 still indicates a deceleration in the manufacturing sector.

Still, economists said advances in new orders and output prices were positive developments that suggest factories are now on firmer footing.

“Today’s PMI reading suggests that downwards pressure on the manufacturing sector has eased markedly,” said Julian Evans-Pritchard of Capital Economics. “While downwards pressure on the economy remains we aren’t seeing as rapid a slowdown this quarter as last.”

via CNN

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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, Alfonso Esparza 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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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