The manufacturing PMI has come in at 50.2, back into expansion for the first time since April this year.
- expected 49.5, prior 49.3
- the new export orders sub-indicator moved to a 7 month high of 48.8
Services (non-manufacturing) improved also, to 54.5 and its highest since March
- expected 53.1, prior 52.8
The composite has thus headed higher also, comes in at 53.7
- prior 52.0
This is an encouraging indication for China’s economy. Authorities have been adding stimulus (monetary and fiscal), although not on a large scale. It appears to be paying some dividends.
The results should be a positive ‘risk’ input when FX markets reopen Monday. Plenty of time for other news before then to impact though!
The private survey (Caixin / Markit) PMIs follow next week:
- manufacturing expected 51.2 (due 2 December at 0145GMT)
- non-manufacturing expected 51.5, prior 51.1 (due 4 December at 0145GMT)
- composite prior 52.0 (also on the 4the of December at 0145GMT)
The private survey PMIs focus more on smaller, export-orientated firms.