Manufacturing PMI from the National Bureau of Statistics (January) comes in at 51.3
- expected 51.6
- prior 51.6
Also out early, as was the services PMI (came in at 55.3 from 54.9 expected and 55.0 previously)
Manufacturing PMI has come in at a miss and also under the December result.
The market places most weight on the manufacturing PMi so this miss should not help the Australian dollar
Why the miss for the manufacturing PMI? Analysts citing:
- China policies to rein in debt and reduce pollution (tighter pollution rules weighs on production)
- Slower property market
- "As the government's ongoing environmental protection and cleanup efforts kick into full swing through the peak heating season, industrial production and related investment activities should soften more visibly this quarter," Wang Tao, head of China economic research at UBS Group AG in Hong Kong, wrote in a report (via Bloomberg))
Having noted the negatives ... it would be remiss not to mention
- PMi still in expansion territory, above 50 ... oh, and for the 18th consecutive month
- Positives include government infrastructure spending, a still resilient property market, strong exports (global growth)
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