| Consensus | Actual | Previous | |
|---|---|---|---|
| Index | 50.8 | 50.9 | 50.8 |
Highlights
The S&P Global China manufacturing PMI survey's headline index increased slightly from 50.8 in January to 50.9 in February and has now indicated modest growth in the sector for four consecutive months. Official PMI survey data also published today, however, showed further contraction in the sector in February, suggesting that China's economy remains impacted by weakness in the property market.
Respondents to the S&P PMI survey reported slightly stronger growth in output and new orders and a second consecutive increase in export orders. Payrolls were reported to have been cut for the sixth consecutive month, but the survey's measure of business confidence rose to a ten-month high. Price pressures were reported to have moderated further in February with the survey showing the slowest increase in input costs in seven months and a reduction in selling prices for the second month in a row.
Today's data was close to the consensus forecast of 50.8 for the headline index. The China RPI fell from minus 36 to minus 43 and the RPI-P fell from minus 50 to minus 60, indicating that data are coming in well below market expectations.
Respondents to the S&P PMI survey reported slightly stronger growth in output and new orders and a second consecutive increase in export orders. Payrolls were reported to have been cut for the sixth consecutive month, but the survey's measure of business confidence rose to a ten-month high. Price pressures were reported to have moderated further in February with the survey showing the slowest increase in input costs in seven months and a reduction in selling prices for the second month in a row.
Today's data was close to the consensus forecast of 50.8 for the headline index. The China RPI fell from minus 36 to minus 43 and the RPI-P fell from minus 50 to minus 60, indicating that data are coming in well below market expectations.
Market Consensus Before Announcement
S&P's manufacturing PMI in February is expected to hold unchanged at January's 50.8.
Definition
The S&P Manufacturing Purchasing Managers' Index (PMI) is based on monthly a questionnaire that surveys of over 500 companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The S&P PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
The S&P PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
