China’s manufacturing activity reached an 18-month high in July as the government stimulus worked its magic, Reuters reported, citing a preliminary HSBC survey. The HSBC Flash China Manufacturing Purchasing Managers’ Index rose to 52 in July from June’s final reading of 50.7, beating a forecast of 51 in a Reuters poll. It was the highest reading since January 2013, and above the 50-point level that separates growth in activity from contraction for the second consecutive month. “Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through,” said Qu Hongbin, chief economist for China at HSBC. “We expect policymakers to maintain their accommodative stance over the next few months to consolidate the recovery.”
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