Over the weekend we had the official PMIs, much improved:
China March 2024 Official Manufacturing PMI 50.8 (expected 50.1) Services 53.0 (exp 51.5)more here: ICYMI – China’s March 2024 manufacturing PMI jumped to its highest in a year
The Caixin / S&P Global Manufacturing PMI out now is the second Manufacturing PMI for March 2024 . and it too is looking positive. Its come in at 51.1, its highest for 13 months
vs. expected 51.0, prior 50.9in expansion now for a 5th consecutive monthmanufacturers’ output and new orders
accelerated last monthexternal demand
also improved, the new export orders sub index hit its highest level since February 2023drop in raw material prices reduced production costsemployment sub-index remained negative, it has been since August 2023
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 non manufacturing PMI will follow on Wednesday
This article was written by Eamonn Sheridan at www.forexlive.com.