Caixin China Manufacturing PMI for September (final) at 47.2

  • flash was 47.0
  • prior was 47.3

Make no mistake ... this is a terrible reading. Its just not as bad as the 'flash' indicated it was going to be.

Key Points from Markit:

  • Production cut at quickest rate since March 2009
  • Total new orders contract at sharper rate amid steeper downturn in new export business
  • Job shedding accelerates to 80-month record

Dr. He Fan, Chief Economist at Caixin Insight Group:

  • "The Caixin China General Manufacturing PMI for September is 47.2, slightly down from the reading for August.
  • This indicates the continued weakness of the manufacturing industry, though the pressure driving the sector's decline has eased.
  • The industry has reached a crucial stage in its structural transformation.
  • Tepid demand is a main factor behind the oversupply of manufacturing and why it has not recovered."

I read Dr. Fan's comments on this release each time and it seems to me he would be a strong competitor to me in being the world's biggest optimist. But ... this time ... even Dr. F doesn't sound too happy.

Meanwhile, in the World's Ugliest Picture Competition ...

Yuck.

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Also, released at the same time ...

Caixin China Composite PMI 48.0

  • prior was 48.8

Caixin Services PMI for September 50.5

  • prior was 51.54