The HSBC purchasing managers' index (PMI) for the Chinese manufacturing sector decreased to a final reading of 50.2 in August, compared to the final reading of 51.7 recorded in July, as announced by HSBC Holdings PLC on September 1.
According to Hongbin Qu, the HSBC's chief economist for China, in August this year demand from overseas markets indicated an improvement, while domestic demand has been sluggish. "Overall, the manufacturing sector still expanded in August, but at a slower pace compared to previous months. We think the economy still faces considerable downside risks to growth in the second half of the year, which warrant further policy easing to ensure a steady growth recovery," he stated.
Meanwhile, as announced by China's National Bureau of Statistics (NBS), the purchasing managers' index (PMI) for China's manufacturing sector was at 51.1 percent in August, down 0.6 percentage points from July.