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16 Dec 2013
Flash: China flash PMI falls, weakening trend to continue - Nomura
FXstreet.com (Bali) - The flash HSBC PMI dropped in December to 50.5 from 50.8 in November, which was consistent with Nomura's forecast, notes Zhiwei Zhang, Economist at the Bank.
Key Quotes
"Demand remained stable, while new orders rose marginally to 51.8 from 51.7 and new export orders edged up to 50.3 from 50.2. Production dropped to 51.8 from 52.2. Stock of finished goods rose to 50 from 49.7. The input price index dropped sharply to 50.3 from 53.0 and the output price index also declined to 49.1 from 50.3, which suggests deflationary pressures in the PPI may persist."
"The decline in the flash PMI suggests growth momentum has started to weaken. We believe this trend will continue in first half of 2014, as market interest rates keep rising and pushing up financing costs for corporates. We will review our 2014 GDP forecast once we know more about the government‟s growth target for next year."
Key Quotes
"Demand remained stable, while new orders rose marginally to 51.8 from 51.7 and new export orders edged up to 50.3 from 50.2. Production dropped to 51.8 from 52.2. Stock of finished goods rose to 50 from 49.7. The input price index dropped sharply to 50.3 from 53.0 and the output price index also declined to 49.1 from 50.3, which suggests deflationary pressures in the PPI may persist."
"The decline in the flash PMI suggests growth momentum has started to weaken. We believe this trend will continue in first half of 2014, as market interest rates keep rising and pushing up financing costs for corporates. We will review our 2014 GDP forecast once we know more about the government‟s growth target for next year."