China PMI data for September was out over the weekend:
September official China PMI for manufacturing 50.8 vs. 51.2 consensus estimate
- from 51.3 in August
- slowest since February and also below the 51.2 consensus estimate of economists.
- exports subindex fell to 48.0, lowest since 2016
Official non-manufacturing PMI 54.9
- expected 54.0
- 54.2 in August
- highest since June
Also, the Caixin manufacturing PMI, came in at 50.0
- prior 50.6 previously
- lowest since May 2017
The lower readings in manufacturing are likely the result of a slowing in exports as trade war impacts begin to bite. There is stimulus being rolled out in China, this will target domestic demand (and is helping improve services readings)
