Manufacturing activity in China stabilized in September after hitting a nine-month low in August, a survey of factory managers showed.
HSBC/Markit China manufacturing PMI flash estimate for September improved slightly from 47.6 in August to 47.8. The flash Manufacturing Output Index fell to 10-month low of 47.0 from 48.2 in August. There was a broad steadying across the subindexes in the survey.
Qu Hongbin, chief economist for China at HSBC, said in a statement accompanying the survey:
China’s manufacturing growth is still slowing, but the pace of slowdown is stabilizing. Manufacturing activities remain lackluster, thanks to weak new business flows and a longer than expected destocking process.
This is adding more pressure to the labor market and has prompted Beijing to step up easing over the past weeks. The recent easing measures should be working to lead to a modest improvement from Q4 onwards.