China official PMI data: Manufacturing 49.8 (expected 49.5)

China National Bureau of Statistics (NBS) data

September PMIs

Manufacturing 49.8

• expected 49.5, prior 49.1

Non manufacturing 50.0

• expected 50.4, prior 50.3

The focus on this data point today is low, its all about stimulus from China now. Its been ramped up and announcements continued over the weekend:

• More stimulus from China over the weekend – banks instructed to cut mortgage rates

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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.

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