The Flash China Manufacturing PMI was 50.4 in February, indicating expansion, but down from the 52.3 reading in January. The Flash China Manufacturing Output Index was 50.9, down from 53.1 in January. Both figures are four-month lows.
“The Chinese economy is still on track for a gradual recovery. Despite the moderation of February’s flash PMI, the index recorded the fourth consecutive reading above the 50 critical line. The underlying strength of Chinese growth recovery remains intact, as indicated by the still expanding employment and the recent pick-up of credit growth,” said Hongbin Qu, chief economist, China & co- head of Asian economic research at HSBC.