HSBC survey shows waning manufacturing activity

An HSBC (HBC.NYSE, 0005.HKG, HSBA.LON) preliminary survey showed further contraction for Chinese manufacturing in September, The Wall Street Journal reported. The survey, a gauge of nationwide manufacturing activity, rose slightly from 47.6 in August to 47.8 in September. A threshold of 50 for the HSBC China Manufacturing Purchased Managers Index indicates an expanding manufacturing sector. September would be China’s 11^th straight month of contraction. The reduced activity has negatively affected markets in the region, with the Shanghai Composite down 1.1% Wednesday morning. The Australian dollar fell against the US dollar and Chinese bonds rose on expectations that Beijing will cut interest rates. The HSBC figure follows lackluster August growth in which imports fell 2.6% and exports climbed 2.7%.