China HSBC PMI recedes from 2-year high to 50.4
BEIJING (REUTERS) - Chinese factory activity grew at its slowest pace in four months in February as domestic demand softened, a private survey showed, supporting expectations that China's modest economic revival requires no change in monetary policy for now.
The final HSBC Purchasing Managers' Index (PMI) fell to 50.4 after seasonal adjustments from January's two-year high of 52.3, in line with a flash reading in late February and above the 50-point level demarcating growth from contraction on a monthly basis.
The combination of moderate economic growth and tame price pressures reinforces bets that China will be in no hurry to abandon loose policy and raise interest rates, analysts said.
Official data showed consumer inflation ran at 2 per cent in January.