In January this year, the China HSBC Flash Manufacturing Purchasing Managers Index (PMI) decreased to 49.6, the lowest level of the past six months, down from December's final reading of 50.5, as announced by the HSBC on January 23. In particular, in January the production index declined to 51.3, down from 51.4 in December last year.
Hongbin Qu, the HSBC's chief economist for China, said that the decrease in the PMI is mainly due to sluggish demand in China's manufacturing sector. He went on to say that in 2014 government policy will focus on avoiding an economic downturn in the first half, following the downturn witnessed in the same period of last year.