China Caixin Services PMI for August 2024 51.6 (expected 52.2)

Both of the Caixin PMIs outperformed official PMIs. The two are different surveys.

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.

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Main points from the report

• New business growth supported by a faster rise in export
  business inflows
• Staffing levels fall marginally amidst cost concerns
• Average charges decline for the first time since January

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Earlier PMIs for August from China.

The official figures were out over the weekend:

• China August Manufacturing PMI 49.1 (expected 49.5), Services 50.3 (expected 50.0)
• ICYMI – China’s official August manufacturing PMI fell to its lowest since February

The private, Caixin, manufacturing PMI turned in a decent performance though:

• China Caixin Manufacturing PMI August 2024: 50.4 (expected 50.0, prior 49.8)
• Recapping the two China Manufacturing PMIs for August – mixed signals

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