Caixin China Manufacturing PMI (February 2025) 50.8 vs. expected 50.3

Caixin China Manufacturing PMI (February 2025) improves to 50.8, well above expected and the best in three months:

• expected 50.3, prior 50.1

In summary:

• Manufacturing continued to expand in February, with output and new orders reaching three-month highs. Export orders rebounded after two months of decline.

• Workforce numbers fell for the sixth straight month as firms prioritized cost-cutting and efficiency, leading to rising backlogs.

• Input costs rose slightly, driven by copper and chemical prices, while output prices fell for the third consecutive month due to discounts and promotions.

• Logistics improved post-Chinese New Year, with better supplier delivery times and increased purchasing activity, though raw material inventories dipped.

• Businesses remain hopeful about future growth, but concerns over employment and household income continue to weigh on domestic demand. March is seen as a key policy window to address economic challenges and boost consumer confidence.

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Over the weekend had the official PMIs showing a little improvement:

• China February PMIs: Manufacturing 50.2 (expected 50.0) Services 50.4 (expected 50.3)

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