BEIJING--A gauge of China's factory activity improved in
February, reflecting stronger output and domestic demand but the
outlook for exports remained dim.
The HSBC China Manufacturing Purchasing Managers" Index rose to
a final reading of 50.7 in February from 49.7 in January, HSBC
Holdings PLC said Monday.
A reading below 50 indicates a contraction in manufacturing
activity from the previous month, whereas a reading above indicates
expansion.
Companies surveyed reported the strongest expansion of output
since last summer while total new business also rose at a faster
rate, HSBC said.
But new export orders contracts for the first time since April
2014, it said.
The final reading was higher than HSBC's preliminary February
PMI of 50.1, announced Feb. 25. The preliminary figure is based on
85% to 90% of responses to its PMI survey.
"The renewed fall in new export orders suggests that foreign
demand has weakened," HSBC's chief economist for China, Qu Hongbin,
said in a statement.
"Marked reductions in both input and output prices indicated
that deflationary pressures persist," Mr. Qu said.
The People's Bank of China on Saturday lowered its benchmark
interest rates by a quarter of a percentage point. Economists are
expecting more monetary easing measures to come over the rest of
the year.
The HSBC China Manufacturing PMI is based on data compiled from
monthly replies to questionnaires sent to purchasing executives in
more than 420 manufacturing companies.
China's official manufacturing PMI, released Sunday, rose
slightly to 49.9 in February from 49.8 in January, according to the
China Federation of Logistics and Purchasing, which issues the data
with the National Bureau of Statistics.
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