December HSBC China PMI drops to three-month low

"The Thursday HSBC China Manufacturing Purchasing Managers Index (PMI) was 54.4, lower than the November 55.3 and October 54.8, followed by a slight correction after a 4-month rise," the finance report said in a survey published in Beijing. HSBC's China manufacturing PMI was the lowest in three months in December, but still above its long-term average of 52.3, according to a Thursday report by HSBC, which suggests that the overall operating conditions in the manufacturing sector continue to be good and still in a recovery channel, as the slowdown in output and new business growth slowed.　　A PMI above 50 per cent said manufacturing activity was in the overall expansion trend, and less than 50 reflected a contraction in manufacturing.　　But while average monthly input and output prices are showing signs of a month-on-month slowdown, they are still impressive, suggesting inflationary pressures remain. Qu Hongbin, HSBC's China chief economist, said that despite the slowdown in December, the change in future policies would still be a factor in tackling inflation rather than growth.　　In the future, he predicts, the government will still rely heavily on quantitative austerity measures to curb inflation and weaken the impact of the second round of quantitative easing in the US, while it is necessary to stabilize inflation expectations in the coming months through modest interest rate hikes.　　In January this year, the index reached a record high of 57.4, February by the Spring Festival factor, PMI briefly to 55.8, the index rose to 57.0 in March, but the revised April figure of 55.2, May and June the index was 52.7 and 50.4 respectively. The seasonally adjusted output index and New order indices for December fell back to a three-month low of 56.8 and 55.7, respectively, but remained relatively high, according to the index.　　The output growth trend has lasted for five months, and the seasonally adjusted New Order index has been held above the 50 line for five consecutive months. According to Reuters, the respondents said manufacturing output in December was linked to continued growth in the new business, but mainly underpinned by strong demand in the domestic market.　　The growth rate of new export orders is much lower than the overall growth of new orders, which are slightly smaller than the long-term average. In addition, the average input price has risen for five consecutive months as of December. Although the seasonally adjusted input price index fell to three-month lows of 72.3, it still showed significant increases in input costs.　　The strength of raw materials such as basic metals, and the increase in energy and fuel prices at the end of the year, have caused the operators to face greater cost pressures. The output price index for the month was 59.1, slowing to its lowest level in four months, but also at a high level.　　Manufacturers that have raised average factory prices generally say they need to shift the pressure of rising costs to customers.　　The average input and output price indices for November were 80.8 and 66.6 respectively. HSBC's China manufacturing Purchasing managers index is HSBC and UK research firm Markit Group Ltd. Jointly prepared. The index is based on feedback from the questionnaire sent to the purchasing directors of more than 430 manufacturers each month. The agency usually publishes the first working day of the monthLast month's manufacturing PMI figures. HSBC released its December figures ahead of the New Year holiday.　　The official December China purchasing Managers Index, compiled by the China Federation of Logistics and Purchasing (CFLP) and the China National Bureau of Statistics, is expected to be released on January 1.　　PMI is a composite index based on five individual indicators, each index and its weight are: New orders 0.3, output 0.25, employment 0.2, supplier time 0.15, procurement stock 0.1, which the supply time index for the reverse calculation, so that its comparability with other indicators consistent. "Author:" Financial "comprehensive report"