CHINESE MANUFACTURING FALLS TO 3-MONTH LOW

Fresh Chinese manufacturing data is out, and it's not great.

According to Markit, the August Flash PMI reading was 50.3, which was a 3-month low.

Here's the commentay from HSBC economic Hongbin Qu:

"The HSBC Flash China Manufacturing PMI moderated to 50.3 in August, down from 51.7 in July. Both domestic and external new orders rose at slower rates compared to the previous month. Meanwhile, disinflationary pressure returned as input and output prices contracted over the month. Today's data suggest that the economic recovery is still continuing but its momentum has slowed again. Therefore, industrial demand and investment activity growth will likely stay on a relatively subdued path. We think more policy support is needed to help consolidate the recovery. Both monetary and fiscal policy should remain accommodative until there is a more sustained rebound in economic activity."

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