International | Mar 01 2010
By Rudi Filapek-Vandyck
(To be read in conjunction with “China PMI Surprises To The Downside“ published earlier today).
The HSBC China Manufacturing Purchasing Managers Index, a monthly gauge of nationwide manufacturing activity conducted independently from a similar survey done by China Federation of Logistics and Purchasing (CFLP), has revealed a slowing in overall activity for Chinese manufacturers today.
The HSBC index fell to 55.8 in February from 57.4 in January. Earlier, an index released by China Federation of Logistics and Purchasing (CFLP) -widely considered the “official PMI”- showed a sharper decline to 52.0 from 55.8.
The decline in HSBC's February's PMI has now interrupted four straight months of gains. The index remains above the key reading of 50, indicating expansion for the sector, for the 11th consecutive month.
"Despite the moderation in the headline China Manufacturing PMI, growth momentum for China's manufacturing sector remains strong, pointing to a further acceleration in industrial activities in the coming quarters," HSBC Chief Economist for China Hongbin Qu was quoted in a statement.
The HSBC China Manufacturing PMI is compiled with UK-based research firm Markit Group. It was formerly known as the CLSA China Manufacturing PMI.