China Caixin Services PMI for November 2023
- expected 50.8, prior 50.4
Key points from the report:
- Business activity and new orders increase at quickest rates in three months
- Confidence around the year-ahead improves
- Inflationary pressures weaken
Composite is 51.6
- prior 50.0
A welcome acceleration in November for all three of the Caixin PMIs. As noted just below this is in contrast to the very disappointing official PMIs for the month. We had the November official PMIs last week:
- China November PMIs: Manufacturing 49.4 (expected 49.7) Services 50.2 (expected 51.1)
- Manufacturing activity contracted for a second straight month, falling deeper into contraction.
- Both services and manufacturing disappointed relative to the median estimates, and slower than October.
And the Caixin Manufacturing PMI also:
- China November Caixin Manufacturing PMI: 50.7 (vs. expected at 49.8)
- exceeds expectations, marking a bounce back into expansion.
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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.
