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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 official PMIs were net better than expected. Manufacturing was 49.1, versus 49.0 forecast and 49.2 prior. The services or non-manufacturing PMI was 51.4, well above expectations at 50.7, (which was also the prior outcome).
- Some of the detail was soft though for the manufacturing PMI, output fell to 49.8 from 51.3. New orders were steady at 49.0. Employment eased to 47.5 from 47.6. New export orders fell to 46.3 from 47.2.
- On the prices front we are at 50.1 from 50.4 in Jan for input prices. Output prices rose though to 48.1 from 47.0. The softer conditions were most evident for small enterprises (46.4 versus 47.2 prior).
- Still, the new order to inventory ratio for the manufacturing PMI rose slightly, see the chart below of this ratio against the headline PMI. This suggests at the margin some improvement in the headline result going forward.
- On the non-manufacturing side, new orders fell to 46.8, while business activity expectations eased to 57.7 from 59.7. New export orders rose though to 47.3 from 45.2, while employment was steady at 47. On the prices front, input prices rose, but selling prices eased a touch.
- The Caixin manufacturing PMI also printed slightly firmer than expected for Feb, 50.9, versus 50.7 forecast.
- A reminder that with the LNY timing may have impacted readings as well. Focus will shift the outcomes of the China NPC in the early parts of this month.
Fig 1: China Manufacturing PMI Versus New Order To Inventory Ratio
Source: MNI - Market News/Bloomberg
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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