China Caixin Manufacturing PMI August 2024: 50.4 (expected 50.0, prior 49.8)

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:

• ICYMI – China’s official August manufacturing PMI fell to its lowest since February

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

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