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HSBC Prelim Manufacturing PMI to Seven Month High

A gauge of China’s factory activity showed fresh signs of strength in June, pointing to improvement in the world’s second-largest economy as export demand improves and a government stimulus program takes hold.

The HSBC preliminary—or flash—manufacturing purchasing managers index came in at a seven-month high of 50.8, up from 49.4 last month, according to data released Monday by HSBC Holdings PLC and data firm Markit. It was also the first time this year that it moved above the 50 mark, which separates expansion from contraction compared with the previous month.

“This rebound in the flash PMI reflects the initial impact of Beijing’s ministimulus program,” said Lu Ting, economist at Bank of America Merrill Lynch, referring to government efforts to boost official spending and to let banks lend more of their deposits.

WSJ [1]

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