China May 2024 Official Manufacturing PMI 49.5 (50.5 expected)

Bad data from China

Manufacturing PMI 49.5 and back into contraction

• Expected 50.5, before 50.4

Services 51.1, missing estimates and down from April result. It’s still expanding though.

• Expected 51.5, before 51.2

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 media company Caixin and research firm Markit/S&P Global.

• The official Purchasing Managers’ Index (PMI) survey covers large and state-owned enterprises, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered a more reliable indicator of China’s private sector performance.
• 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 for China’s manufacturing sector.
• The Caixin manufacturing PMI will follow on Monday, and services on Wednesday

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