Over the weekend, we got the official PMIs:
China Manufacturing PMI for August 49.1 (49.5 expected), Services 50.3 (50.0 expected)
More details:
The Caixin S&P Global Manufacturing Purchasing Managers’ Index was much better, at 50.4.
From the report, in brief:
Demand rose as total new orders resumed growth, with demand for intermediate goods increasing.
Exports fell for the first time in eight months.
Employment held steady after 11 months of contraction
Input and output prices fell.
Lower prices of raw materials such as industrial metals have led to lower input costs.
Producer prices fell amid sales pressure, with the corresponding index hitting a four-month low.
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There are two main PMI surveys in China – the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by media company Caixin and research firm Markit/S&P Global.
The official PMI survey covers large, state-owned enterprises, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered a more reliable indicator of private sector performance in China.
Another difference between the two surveys is their methodology. The Caixin PMI survey uses a wider sample of companies than the official survey.
Despite these differences, the two surveys often provide similar readings about China’s manufacturing sector.
This will be followed by the Caixin Services Purchasing Managers’ Index (PMI) on Wednesday.
The post China Caixin Manufacturing PMI August 2024: 50.4 (expected 50.0, prior 49.8) first appeared on Investorempires.com.