Factory activity edges back into expansion zone

Flash PMI offers mixed signals, with new export orders sinking in Feb

Manufacturing activity in China is likely to have rebounded this month, HSBC Holdings Plc said on Wednesday as it released the flash estimate of the Purchasing Managers Index.

The final PMI is expected to show a rebound for February that will take it back to expansion after two months of contraction, the bank said. The manufacturing PMI was estimated at a four-month high of 50.1, compared with January's level of 49.7 and December's 49.6 reading, as output and new orders both expanded slightly, said the bank.