China Caixin Manufacturing PMI for March 51.1 (expected 51.0, prior 50.9)

Over the weekend we had the official PMIs, much improved:

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

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