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20 Nov 2014
China HSBC manufacturing PMI declines slightly as exports lose momentum - Danske
FXStreet (Barcelona) - According to the Danske Bank Research Team, the fall in HSBC/Markit manufacturing PMI suggests that the slower global growth has start to weigh on China as export orders appear to have lost a bit of momentum.
Key Quotes
"In China, the flash estimate for HSBC/Markit manufacturing PMI in November declined a bit more than expected to 50.4 (consensus: 50.2, DBM: 50.2) from a final reading of 50.4 in October."
"The slight improvement in new orders despite the decline in export orders suggests that domestic demand held up relatively well in November. This is consistent with the hard data for October where there were tentative signs of stabilisation in domestic investment demand."
"However, export orders appear to have a lost a bit of momentum in recent months, suggesting that slower global growth has started to weigh. Hence, downside risk for the Chinese economy in the short term appears to have shifted more towards external demand."
"Looking ahead, we expect weaker global manufacturing activity to continue to exert moderate downward pressure on China’s manufacturing PMIs in the next few months."
Key Quotes
"In China, the flash estimate for HSBC/Markit manufacturing PMI in November declined a bit more than expected to 50.4 (consensus: 50.2, DBM: 50.2) from a final reading of 50.4 in October."
"The slight improvement in new orders despite the decline in export orders suggests that domestic demand held up relatively well in November. This is consistent with the hard data for October where there were tentative signs of stabilisation in domestic investment demand."
"However, export orders appear to have a lost a bit of momentum in recent months, suggesting that slower global growth has started to weigh. Hence, downside risk for the Chinese economy in the short term appears to have shifted more towards external demand."
"Looking ahead, we expect weaker global manufacturing activity to continue to exert moderate downward pressure on China’s manufacturing PMIs in the next few months."