Caixin China PMI does better

Personally I rate the official PMI much more highly, it is considerably larger, but of note nonetheless comes the Caixin version:

October data showed the strongest improvement in operating conditions faced by Chinese manufacturers since February 2017. Output and new orders both expanded at steeper rates, with the latter supported by a renewed increase in export business. As a result, companies increased their purchasing activity, and at the quickest pace for 20 months. However, efforts to contain costs contributed to a further drop in staffing levels, which underpinned another solid increase in outstanding business. Prices charged by manufacturers meanwhile fell slightly due to competitive market pressures, while cost burdens rose only slightly.

Business confidence regarding the 12-month outlook for output improved to its highest since April, with a number of firms optimistic that market conditions will strengthen.

The headline seasonally adjusted Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy – rose from 51.4 in September to 51.7 in October. The index has now signalled an improvement in operating conditions for three months running, with the latest improvement the strongest seen since February 2017.

Total new work received by Chinese goods producers rose solidly in October, with the rate of expansion the quickest recorded for 81 months.

Companies commented on firmer underlying market conditions and improved client demand both at home and abroad. Notably, new export business increased for the first time in five months, albeit marginally.

Boom! If you believe it…

David Llewellyn-Smith
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