Chinese manufacturing sector PMI rises past forecasts

The preliminary reading for HSBC’s Chinese manufacturing sector gauge for the month of September edged higher to a reading of 50.5 from 50.2 in the month before.

That reading, which is based on a slightly smaller sample of companies than the release due out on 30 September, may ease pressures on Beijing to act further to help its cooling economy.

The median consensus forecast was for a print of 50 points.

“Economic activity in the manufacturing sector showed signs of stabilization in September,” said Qu Hongbin, chief China economist in a statement.

Nevertheless, Hongbin added that “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.”

Gauges for both new orders and new export orders grew at a faster rate.