China’s factory activity fell to a three-month low in August, a private survey showed on Thursday, signaling continued weakness in the sector despite the recent burst of stimulus from the government.
The HSBC flash Purchasing Managers’ Index (PMI) came in at 50.3, much lower than a Reuters poll expecting 51.5 and following an 18-month high of 51.7 in July. It’s the lowest reading since May, although it remained above the 50-mark which separates expansion from contraction.
The Australian dollar slumped following the data, falling to $0.9246 from $0.9280. China’s Shanghai Composite Index fell 0.4 percent while Hong Kong’s Hang Seng Index lost 0.4 percent.