China May 2024 Official Manufacturing PMI 49.5 (expected 50.5)

Poor data from China.

Manufacturing PMI 49.5 and back into contraction

• expected 50.5, prior 50.4

Bumpy road:

Services 51.1, missing estimates and falling below April’s result. Still in expansion though.

• expected 51.5, prior 51.2

The Composite comes in at 51.0

• prior 51.7

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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 manufacturing PMI will follow on Monday, services on Wednesday

This article was written by Eamonn Sheridan at www.forexlive.com.