On Saturday we had the first round of Chinese PMIs for August:
China August Manufacturing PMI 49.1 (expected 49.5), Services 50.3 (expected 50.0)manufacturing PMI has fallen for six months in a row49.1 is a six-month low factory gate prices were their lowest in 14 months (42.0, sharply down from already weak 46.3 in July)the sub indexes for new orders and new export orders remained in contractionthe employment sub index was also weak the non-manufacturing PMI rose to 50.3 from 50.2 in July
China has two primary Purchasing Managers’ Index (PMI) surveys – the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.
The official PMI survey covers large and state-owned companies, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China’s private sector.Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey.Despite these differences, the two surveys often provide similar readings on China’s manufacturing sector.The Caixin manufacturing PMI is today, Monday. Services follows on Wednesday.
The Ciaxin reading today is expected to improve to expansion in August.
This snapshot from the ForexLive economic data calendar, access it here.The times in the left-most column are GMT.The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.
This article was written by Eamonn Sheridan at www.forexlive.com.
