China HSBC Preliminary Manufacturing PMI Rises to 52.0

A preliminary gauge of Chinese manufacturing activity rose to an 18-month high in July, suggesting Beijing’s efforts to stimulate growth are paying off.

The preliminary HSBC China Manufacturing Purchasing Managers’ Index, a gauge of nationwide manufacturing activity, rose to 52.0, compared with a final reading of 50.7 in June, HSBC Holdings PLC said Thursday.  A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction.

China posted output growth of 7.4% in the first quarter compared with a year ago and 7.5% in the second, a slowdown from the 7.7% growth the world’s No. 2 economy posted in the fourth quarter of 2013. China has responded with a series of steps that include speeding up construction projects and picking up the pace of lending, which economists have called ministimulus measures.


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.