Markit reported the HSBC China Flash PMI increased to a 5-month from 48.2 in June to 49.5 in July. Manufacturing is still contracting but the reading shows the Chinese economy may be bottoming. Here’s Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC,
“July’s headline PMI picked up modestly to a five-month high of 49.5, suggesting that the earlier easing measures are starting to work. That said, the below-50 July reading implied demand still remaining weak and employment under increasing pressure. This calls for more easing efforts to support growth and jobs. We believe the fast falling inflation allows Beijing to do so and a more meaningful improvement of growth is expected in the coming months when these measures fully filter through.”
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