China Caixin Manufacturing PMI for March 51.1 (expected 51.0, prior 50.9)

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 50.9
• in expansion now for a 5th consecutive month
• manufacturers’ output and new orders
  accelerated last month
• external demand
  also improved, the new export orders sub index hit its highest level since February 2023
• drop in raw material prices reduced production costs
• employment 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.