China Manufacturing PMI - this the private survey (see note below)
Caixin Markit Manufacturing PMI for March, comes in at a big beat and a much improved 50.8. First expansionary reading in four months and the highest since July 2018.
- expected 50.0, prior 49.9
- Over the weekend the official PMIs were released: China official PMIs (March): Manufacturing 50.5 (vs. expected 49.6), Services 54.8 (54.0)
Highlights from the report:
- slightly quicker rises in output and overall new work
- employment increased for the first time in over five years
- Firmer demand conditions
- inventories of inputs rose slightly for the first time since last November
- Average input costs rose slightly
- higher selling prices
- Sentiment regarding the 12-month business outlook improved to a ten-month high
- stronger, albeit still relatively muted, rise in total new work
- new export orders rose slightly
Staffing levels at goods producers increased during March, to mark the first expansion since October 2013
- Some firms mentioned hiring additional workers to support greater production and new business developments. Staff hiring also coincided with sustained signs of stretched capacity at manufacturers, as outstanding workloads continued to rise at a moderate pace.
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This is going to add to optimism on China stimulus efforts beginning to pay off.
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Note the link above to the official PMIs
- there are two different PMI readings from China, the official government PMI and the Caixin / Markit survey.
These are distinctly different surveys
- this one today, the Caixin / Markit has greater representation of small and medium sized firms.
- the official PMI is more heavily weighted towards SOEs and larger business … these tends to receive more direct government support.
