BEIJING–The preliminary HSBC China Manufacturing Purchasing Managers’ Index, a gauge of nationwide manufacturing activity, rose to 50.1 in February compared with a final reading of 49.7 in January, HSBC Holdings PLC said Wednesday.
A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above indicates expansion.
“Today’s data point to a marginal improvement in the Chinese manufacturing sector going into the Chinese New Year period in February,” HSBC’s chief economist for China, Qu Hongbin, said in a statement.
“However, domestic economic activity is likely to remain sluggish and external demand looks uncertain. We believe more policy easing is still warranted at the current stage to support growth,” he added.
The output sub-index increased at a faster rate in February while new export orders contracted for the first time since April 2014, said HSBC and data provider Markit. Both input and output prices remained in contraction territory.
The HSBC China Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in more than 420 manufacturing companies. The preliminary figure is based on 85% to 90% of the responses to its PMI survey.
HSBC will release its final PMI data on Monday.
China’s official manufacturing PMI fell to a weaker-than-expected 49.8 in January from 50.1 in December, its first dip below 50 since September 2012.
Write to Grace Zhu at grace.zhu@wsj.com
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