HONG KONG (MarketWatch) -- Business conditions for Chinese manufacturers saw further improvement in January from the levels seen in December, according to the initial reading of a monthly survey by HSBC released Thursday. The so-called flash Purchasing Managers' Index for January climbed to a 24-month high of 51.9, up from 51.5 in December. A reading above 50 signals an expansion in manufacturing activity. HSBC's flash PMI is based on responses from 85% to 90% of all respondents to a survey. The latest reading represents an improvement for the fifth straight month, "heralding a good start to the New Year," said Hongbin Qu, chief economist for China at HSBC. "Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China's ongoing recovery in the coming months," he added.
