The official PMIs were a little earlier: China (Sep.)Manufacturing PMI 52.4 (exp 51.6, prior 51.7) & Services 55.4 (prior 53.4)
Now the private survey Caixin / Markit Manufacturing PMI, a miss on expectations at 51.0 and under August
- expected 51.5
- prior 51.6
- 4th month in a row above 50
In brief from the report:
- Production and new orders (slowest increase in new orders for three months) both expanded at softer rates
- Firms signalling slower growth in export sales
- Staffing levels continued on a downward trend
- Inflationary pressures picked up, average input costs and output prices both rising sharply
Comment from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:
- "The Caixin China General Manufacturing Purchasing Managers' Index fell 0.6 points to 51.0 in September, still staying in expansionary territory.
- The sub-index for output indicated that production rose at a slightly slower pace than in the previous month as growth in new orders decelerated.
- The sub-indices for output prices and input costs increased further, both hitting their highest level seen this year.
- However, the sub-index measuring stocks of finished goods fell for the fourth straight month in September while stocks of purchases also contracted.
- The manufacturing sector continued to expand in September, although at a slightly weaker rate. The Chinese economy was stable in the third quarter. But the outstanding price pressure from upstream industries will be a drag on the continued improvement of companies' profitability."
