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:
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 goods - Exports declined for the first time in eight
months - Employment remained steady after an 11-month contraction
- Both input and output prices decreased
- Lower prices for raw materials such as industrial metals brought down input
costs - Output 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