Over the weekend we had the official PMIs:
China August Manufacturing PMI 49.1 (expected 49.5), Services 50.3 (expected 50.0)
More detail:
ICYMI – China’s official August manufacturing PMI fell to its lowest since February
The private, Caixin S&P Global manufacturing PMI is much better, coming in at 50.4.
From the report, in summary:
Demand picked up as total new orders resumed growth, with stronger
demand for intermediate goodsExports declined for the first time in eight
monthsEmployment remained steady after an 11-month contractionBoth input and output prices decreasedLower prices for raw materials such as industrial metals brought down input
costsOutput prices decreased amid sales pressure, with the corresponding
indicator reaching the lowest level in four months
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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 services PMI will follow on Wednesday
This article was written by Eamonn Sheridan at www.forexlive.com.
