Apr. 23, 2012 (China Knowledge) - The preliminary HSBC China manufacturing purchasing managers' index (PMI), a preliminary gauge of China's manufacturing sector, rose to 49.1 in April this year, 0.8 points higher than the final reading of 48.3 in March, according to data released by HSBC Holdings PLC<0005
The rebound in the HSBC PMI ended a decline for four consecutive months. However, the reading still stayed below 50 for the sixth consecutive months.
A reading below 50 indicates contraction from the previous month, while a reading above 50 suggests expansion.
The new order index increased to 48.9 from 47.4 in March, and rises also recorded in the output index, new export order index and employment index.
Qu Hongbin, chief economist for HSBC China, the climb in the preliminary PMI, resulted from the government's loosened policies, could ease concerns over a possible sharp slowdown in the Chinese economy.
HSBC estimated that China would further loosen its monetary and fiscal policies in the second quarter.