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.
