China HSBC PMI Up on Stronger Global Demand

China’s factory sector turned in its best performance in four months in May as export orders improved although activity still contracted, a private survey showed on Tuesday, adding to signs the economy may be stabilizing.

The final reading of the HSBC/Markit purchasing managers’ index (PMI) for May rose to 49.4, lower than a preliminary reading of 49.7 but up from 48.1 in April.  The final PMI was weaker than the flash reading due to an upward revision of the stocks of finished goods, HSBC said.

The new export orders sub-index rose to four-year high of 53.2 in May from April’s 48.9, but the new orders sub-index barely stopped contracting, suggesting domestic demand remains sluggish despite the improving global demand.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.