Thursday, 31 May 2012

HSBC's China

0240 GMT [Dow Jones] HSBC's China PMI, a competing measure to the official PMI which is better regarded by many analysts, declined to 48.4 in May, compared to 49.3 in April and an earlier preliminary reading of 48.7. The series has been in contractionary territory below 50 for seven straight months, in contrast to the official CFLP PMI, which posted a rise to 53.3 in April before falling to 50.4 in May. The April CFLP PMI reading has been widely viewed with suspicion in markets, as other April data was weak across-the-board. In a note on Thursday, Capital Economics said the HSBC PMI is more reliable due to better seasonal adjustment and a higher sampling of small, private-sector firms. The HSBC index "is more representative of the manufacturing sector as a whole," Capital Economics said. "It is also independent of official control." (aaron.back@dowjones.com) 

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