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Economy / China

PMI A Mixed Bag

September 2010 | Economic Analysis

The HSBC Purchasing Managers' Index (PMI) ticked up to 51.9 in August after falling to 49.4 in July, while China's Federation of Logistics and Purchasing (CFLP) index rose to 51.7 in August from July's 51.2. Both these indicators signal that China's manufacturing sector bounced in August. That said, the three-month moving average remains in a downtrend, and the import component supports our view that a domestic demand slowdown awaits in H210 and 2011.

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