New Orders Index (NOI) was 50.5% in October, down from 51.3% in September., down from 51.3% in September.
New Export Orders Index (NExOI) dropped below the critical level of 50% in October
Taken together, the NOI and NExOI, shows that the domestic consumption is healthy and is the prime factor drving PMI growth.
Input prices index declined sharply by 10.4 ppt. to 46.2% in October (vs 56.6% in September)
---- for the first time since April 2009.
Employment index was 49.7% in October, down from 51.0% in the previous month.
• Output growth supported by renewed expansion of overall new orders
• Growth of new export business the highest since January
• Input cost inflation eases; charges rise at faster pace
Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
"The final PMI confirms the notable improvement in China’s manufacturing activities driven by rising new business from both domestic and external markets. Despite the slight uptick in output prices growth, inflation is on track for easing. This provides leeway for Beijing to fine-tune policy to strike a better balance between growth and inflation priorities. We expect stable monetary policy with targeted easing in the coming months."
S Korea PMI
Ronald Man, Economist at HSBC in Asia said:
"Whilst uncertainty still hangs over Europe, the story in Korea is clearer. Korea’s manufacturing sector remains on track for a soft landing. The rate of contraction in October has eased, with the PMI index heading back towards the 50 no-change level. No doubt, soft global demand will hold back new orders, but a tight labour market at home and resilient Chinese growth should help Korea’s manufacturing sector push through the fourth quarter."
Taiwan Manufacturing PMI survey, Donna Kwok, Economist at HSBC in Asia said:
"The impact of softening Western demand is becoming more evident as output continues to cool. That said, with employment holding up better than the last downturn of 2008-2009, and with China’s manufacturing activity now stabilizing, Taiwan should be able to lean a bit more heavily on Mainland demand as it fends off the impact of US and European deleverage going forwards."
CFLP data and HSBC data contradicts on New Orders Index (NOI) but correlates on Input Prices Index----- this divergence could be indicative of the many changes the SMEs are undergoing on the ground level and the differing methodologies and difficulties in collecting consensus opinions/data, for the PMI, for the moment.
S Korea & Taiwan
If the HSBC data is to be believed, China's recovery in the PMI has helped arrest the fall in both nations PMI and helped in the stabilisation of their manufacturing activities.
Russia & India
Both countries PMI have bottomed and appears on the path of recovery.