CHINESE MANUFACTURING SURGES TO 18-MONTH HIGH

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china factory worker

AP Photo

HSBC China flash PMI, a gauge of manufacturing conditions, climbed to an 18-month high of 52 in July, from 50.7 the previous month.

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This beat expectations for a rise to 51. A reading below 50 indicates contraction.

New orders and export orders climbed at a faster rate.

"Economic activity continues to improve in July, suggesting that the cumulative impact of mini-stimulus measures introduced earlier is still filtering through," Hongbin Qu, HSBC China economist said in a press release.

"We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery."

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The recent surge in Chinese credit has prompted some economists to say that growth has again become Beijing's top priority.

Here's a breakdown of the sub-indices:

july china pmi

Markit Economics/HSBC

Here's a look at the improvement in Chinese manufacturing.

China pmi

Markit Economics/HSBC

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