Operating conditions in China manufacturing deteriorate for first time since May

HONG KONG – The HSBC China Flash China Manufacturing PMI™ for December has come in at 49.5 (50.0 in November), a seven-month low. The Flash China Manufacturing Output Index was  at 49.7 (49.6 in November), a two-month high.

Qu, Chief Economist, China & Co- Head of Asian Economic Research at HSBC said China domestic demand slowed considerably, and fell below 50 for the first time since April 2014. Price indices also fell sharply.

“The manufacturing slowdown continues in December and points to a weak ending for 2014,” he said. “The rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months.” www.hsbc.com (ATI).