Chinese manufacturing PMI indicates soft landing

by Chris Becker

It’s PMI day in China – an important economic print that will have iron ore and other commodities moving, let along satellite stock markets like the ASX200. Today’s headline manufacturing PMI print came in a little lower than expected at 51.4 vs 51.5, slightly below last month’s 51.7 with non-manufacturing at 54.5

Anything above 50 indicates expansion, but its pretty clear that a “soft landing” remains in place:

Here’s the inside numbers, from Forexlive:

Some of the sub indexes:
  • New orders down to 52.8 (from 53.1 in June)
  • Output 53.5 (54.4)
  • Employment 49.2 (49.0)
  • new export orders 50.9 (52.0)
Prices higher:
  • Input prices 57.9 (50.4 in June)
  • Output prices 52.7 (49.1)
Commentary from the Statistics Bureau:
  • Construction sector expected to continue fast growth

  • Companies confidence higher for future



  1. * .. its pretty clear that a “soft landing” remains in place * . It ought to have been crystal clear – for a while now – that this outcome was always to be rationally expected – for the next 6 months, at least.

    It may be that the author is presenting as though a pessimistic different reading may have been sought by some ?

    FMG to the races.

  2. DominicMEMBER

    Soft landing forever or soft landing today?

    People who think China will be ‘just fine’ …. I have a bridge to sell you. Things look benign because of the incessant liquidity injections. That game cannot continue forever.

    • Yep – the worlds largest debt fueled Ponzi scheme is headed for a ‘soft landing’……now where have I heard that before ?