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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA DATA
China's official PMI prints for April were a mixed bag. Manufacturing stayed in expansion territory, printing at 50.4 (50.3 was forecast and 50.8 was the prior outcome). Non-manufacturing or services stayed in expansion territory at 51.2, but this was comfortably below market expectations (52.3 and the prior outcome of 53.0). The composite index is back to 51.7 from 52.7 in March.
- The manufacturing PMI detail showed mixed details. New orders slipping to 51.1 from 53.0, but inventories also fell to 47.3. This left the new orders to inventory ratio close to unchanged for the month. The chart below overlays this series against the headline PMI index.
- Output rose to 52.9 from 52.2. Employment was steady at 48.0, while price inputs rose. The input price measure to 54.0 from 50.5, while output prices rose to 49.1 from 47.4.
- The Caixin manufacturing PMI rose to 51.4 from 51.1 prior (the forecast was 51.0). This is the highest print since Feb last year.
Fig 1: Headline China PMI Versus New Orders To Inventory Ratio
Sources: MNI - Market News/Bloomberg
- On the services side new orders fell to 46.3 from 47.4, while business activity expectations eased to 57.2 from 58.4. Most other indicators improved though versus March reads.
- On the price front, input prices firmed up to 51.1 from 49.5, selling prices rose to 49.4 from 48.6.
- Overall, while the services miss is disappointing, we at least remain in expansion territory. The manufacturing outcomes suggest resilience in this sector, which is likely to provide some relief, given March industrial production figures showed a slowing in momentum.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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