BEIJING—The preliminary HSBC China Manufacturing Purchasing
Managers Index, a gauge of nationwide manufacturing activity, rose
to 49.6 in June, compared with a final reading of 49.2 in May, HSBC
Holdings PLC said Tuesday.
But the reading is still below the 50 level which separates
expansion from contraction.
The flash manufacturing PMI was "a mixed bag of data in June,"
as output and purchasing activity showed signs of improvement while
manufacturers continued to cut their staff numbers, with the June
reduction the sharpest in more than six years, Annabel Fiddes, an
economist at data provider Markit, said in a statement.
"This suggests that companies have relatively muted growth
expectations as demand conditions both at home and abroad remain
relatively subdued," said Ms. Fiddes.
She added that the data suggested the manufacturing sector has
lost growth momentum in the second quarter and Beijing may need to
"step up their efforts to stimulate growth and job creation in the
second half of the year."
The preliminary PMI figure, also called the HSBC Flash China
PMI, is based on 85 % to 90 % of total responses to HSBC's PMI
survey each month, and is issued about one week before the final
PMI reading.
-- Graze Zhu
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