Hong Kong, China (4E) – The preliminary reading of HSBC China Manufacturing Purchasing Managers (PMI) Index declined to 49.6 in January, a six-month low, compared with a final reading of 50.5 in December, according to a HSBC Holdings PLC statement released Thursday.
The report, which measures nationwide manufacturing activity, indicates softening growth momentum among manufacturers, which has also hit employment growth, according to Qu Hongbin, chief China economist at HSBC in Hong Kong.
A figure above 50 suggests expanding activity on the month, while a reading below it means contraction.
Most of the subindexes fell including new orders, new export orders, and employment, according to the report.
Thursday’s data, also known as the Flash PMI, based its findings on 85 percent to 90 percent of responses to surveys sent to executives of over 420 manufacturing firms. The final reading is due on Jan. 30.
The official data compiled by the National Bureau of Statistics and China Federation of Logistics and Purchasing release their version of the manufacturing PMI on Feb. 1. The measure for December stood at 51.0, lower than November’s 51.4 and a four-month low.