The HSBC purchasing managers' index (PMI) for the Chinese manufacturing sector indicated a final reading of 49.7 for January this year, rising by 0.1 percentage points compared to the final reading for December of 49.6, as announced by HSBC Holdings PLC on February 1.
According to Hongbin Qu, HSBC's chief economist for China, in January this year the increase in credit and the expansion of infrastructure investment stimulated demand, but not sufficiently. Since the Spring Festival (February 18-24) this year takes place later than last year, year-on-year growth is still good, while the month-on-month change has indicated a slow recovery. The HSBC official said that demand in Chinese manufacturing remained weak and he suggested that the Chinese government should implement more aggressive monetary and fiscal easing measures.