Chinese Manufacturing Purchasing Managers Index data for April
- 50.2 prev
- non-manufacturing PMI 53.5 vs 53.8 prev
Data out earlier today and the softer reading should not be a surprise but look out for some weakness in AUD on the Asian opening later. Recent Chinese monetary easing is obviously not having the desired effect as yet, raising doubts over how the recent economic uptick can be sustained.
Manufacturers are continuing to shed jobs and at a faster pace, not good either when the authorities are trying to step up reform to increase consumption/domestic demand.
China Manufacturing Purchasing Managers Index (PMI) provides an early indication each month of economic activities in the Chinese manufacturing sector.It is compiled by China Federation of Logistics & Purchasing (CFLP) and China Logistics Information Centre (CLIC), based on data collected by the National Bureau of Statistics (NBS).Li & Fung Research Centre is responsible for drafting and disseminating the English PMI report.
Every month questionnaires are sent to over 700 manufacturing enterprises all over China. The data presented here is compiled from the enterprises responses about their purchasing activities and supply situations. A higher than expected reading should be taken as positive/bullish for the CNY , while a lower than expected reading should be taken as negative/bearish for the CNY.