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China September HSBC flash PMI edges up to 50.5

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Reuters BEIJING
Last Updated : Sep 23 2014 | 9:55 AM IST

BEIJING(Reuters) - China's manufacturing sector expanded at a slightly faster pace in September even as employment fell to a 5-1/2-year low, a preliminary HSBC survey showed on Tuesday.

The HSBC/Markit Flash China Purchasing Managers' Index (PMI) rose to 50.5 in September from August's final reading of 50.2, beating a Reuters poll forecast of 50.

The 50-point level separates growth in activity from contraction.

The employment sub-index fell to 46.9, a low not seen since February 2009.

A hefty drop in employment could raise alarm bells for the Chinese government, which has indicated it will tolerate slower economic growth as long as employment is not affected.

Other sub-indices fared better.

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New export orders climbed to a 4-1/2-year high while the new orders sub-index also rose to stand comfortabably above 50.

The final Markit/HSBC manufacturing PMI for September is due Sept. 30.

(Reporting By Jake Spring; Editing by Kim Coghill)

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First Published: Sep 23 2014 | 9:45 AM IST

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