HSBC’s China Purchasing Managers’ Index showed the factory sector contracted slightly for a third consecutive month in September, Reuters reports, while factory inflation quickened to a four-month high. The HSBC PMI, comes out before official monthly output data, was at 49.9 in September, unchanged from August. The final reading was stronger than the flash PMI reading of 49.4, published last week. ”This implies that although the lagged effects of credit tightening will continue to cool industrial activity in the months ahead, there is little need to worry about a sharp slowdown,” said Qu Hongbin, China economist at HSBC.

This entry was posted by Kate Mackenzie on Friday, September 30th, 2011 at 5:23 and is featured in The 6am Cut London (30 Sep 2011) . Tagged with china, PMIs. Edit this entry.