February HSBC PMI drops to 51.7 record 7-month low

HSBC's China manufacturing Purchasing managers Index (PMI) fell from 54.5 to 51.7 at a 7-month low in February, Yangshui HSBC reported yesterday.　　HSBC said China's manufacturing boom has continued to improve, but growth has slowed markedly, and slowing growth is helping to curb inflation. HSBC said in its report that output only edged up in February, slowing new business growth and the first drop in new export orders since last August.　　At the same time, manufacturers continue to transfer cost pressures to customers by increasing the price of their products. China's manufacturing production continued to grow in February, but the pace of expansion slowed sharply, according to the survey.　　During the current 7-month growth period, February was the slowest, and below the long-term average, only a small increase. According to the survey, output growth is weak mainly because the overall growth of new business slowed down, creating a 6-month low.　　In addition, new export orders fell slightly in February, ending the 5-month growth trend. The February data also showed that China's manufacturing sector fell, albeit slightly, for the first time since October last year.　　On the reasons for the attrition, the respondents generally said that the resignation of employees. In addition, the decline in output demand led to a reduction in purchases by manufacturers in February and a sharp drop in procurement growth to a 6-month low. Procurement inventories also fell for the second consecutive month, with a faster decline than in January. Even so, the supplier's average supply rate has deteriorated for the 19th consecutive month, with February delays being tied first.　　The respondents generally said that there was a shortage of suppliers, resulting in delays in supply. Not only that, the February increase in input costs, a 3-month high, manufacturers believe that the reason is the price of raw materials and fuel. Prices of copper and steel are rising by the ring. According to the respondents, during the recent survey, cost pressures originated in the domestic market. This month, manufacturers continue to shift rising costs to customers by increasing the price of their output.　　Factory prices rose sharply, the biggest increase since last November.　　For the February PMI data, Qu Hongbin, chief economist and head of Economic Research Asia-Pacific, said that, given the slight improvement in new orders, the final value of the manufacturing Purchasing Managers ' index was revised upwards, even though it confirmed the slowdown in manufacturing growth in China. "Of course, we don't think the market needs to worry about the downturn, but the slowing growth helps curb inflation," he said.　　"said Qu. China's National Bureau of Statistics yesterday reported a February PMI of 52.2, below January's 52.9, the index's third consecutive month of decline.