Over the weekend we had the official PMIs, much improved:
- China March 2024 Official Manufacturing PMI 50.8 (expected 50.1) Services 53.0 (exp 51.5)
- more here: ICYMI - China's March 2024 manufacturing PMI jumped to its highest in a year
The Caixin / S&P Global Manufacturing PMI out now is the second Manufacturing PMI for March 2024 . and it too is looking positive. Its come in at 51.1, its highest for 13 months
- vs. expected 51.0, prior 50.9
- in expansion now for a 5th consecutive month
- manufacturers' output and new orders accelerated last month
- external demand also improved, the new export orders sub index hit its highest level since February 2023
- drop in raw material prices reduced production costs
- employment sub-index remained negative, it has been since August 2023
China has two primary Purchasing Managers' Index (PMI) surveys - the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.
- The official PMI survey covers large and state-owned companies, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China's private sector.
- Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey.
- Despite these differences, the two surveys often provide similar readings on China's manufacturing sector.
- The Caixin non manufacturing PMI will follow on Wednesday
