China provisional manufacturing purchasing managers' Index (PMI) rose to 50.5, 2-month high in September 2014 compared with 50.2 in August, according to HSBC. Meanwhile, Chinese manufacturing output index came at 51.8 in September, was unchanged from August's two-month low.
Hongbin Qu, chief economist, China & Co-Head of Asian Economic Research at HSBC said, "The HSBC China Manufacturing PMI rose to 50.5 in the flash reading for September, up from the final reading of 50.2 in August. The picture is mixed, with new orders and new export orders registering some improvement.''
''Meanwhile, the employment index declined further and disinflationary pressure intensified. Economic activity in the manufacturing sector showed signs of stabilization in September. However, overall the data still point to modest expansion. The property downturn remains the biggest downside risk to growth. We continue to expect more monetary easing from the PBoC in order to steady the recovery,'' Hongbin Qu added.