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HSBC PMI Survey on China Shows Recovery

China’s manufacturing improved this month, adding to signs a recovery might be taking shape after a sharp slump in the world’s No. 2 economy.

A preliminary version of HSBC’s monthly purchasing managers’ index rose to a three-month high of 49.1 points on a 100-point scale, the bank said Wednesday. That still was below the 50-point level that indicates a contraction but was a strong improvement from September’s 47.9.

That added to data last week that showed retail sales and investment picking up. Economic growth in the three months ending in September fell to a three and a half year low of 7.4 percent but the decline was much gentler than in earlier quarters. Activity grew by 2.2 percent over the previous quarter, the biggest such gain in a year.

HSBC Corp. said the preliminary reading is based on responses from 85 to 90 percent of the 420 companies it surveys each month. The final index is due out Nov. 1.

“October’s flash PMI reading continues to recover for the second month, thanks in part to a gradual improvement in the new orders index, which picked up to a six-month high,” said HSBC economist Hongbin Qu in a statement.

via Mainichi [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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
Alfonso Esparza

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