| Consensus | Actual | Previous | |
|---|---|---|---|
| Index | 51.0 | 51.4 | 51.1 |
Highlights
The S&P Global China manufacturing PMI survey's headline index increased slightly from 51.1 in March to 51.4 in April and has now indicated expansion in the sector for five consecutive months. Official PMI survey data also published today, however, showed slightly weaker conditions in the sector.
Respondents to the S&P PMI survey reported output grew in April at the fastest pace since May 2023, with new orders and new export orders also reported to have risen at a faster pace. Payrolls, however, were reported to have been cut for the eighth consecutive month, while the survey's measure of business confidence fell to a four-month low. Respondents reported a stronger increase in input costs but a fourth consecutive reduction in selling prices.
Today's data were somewhat stronger than consensus forecasts, with the China RPI increasing from minus 34 to minus 19 and the RPI-P rising from minus 27 to minus 6, indicating that data are coming in just below market expectations.
Respondents to the S&P PMI survey reported output grew in April at the fastest pace since May 2023, with new orders and new export orders also reported to have risen at a faster pace. Payrolls, however, were reported to have been cut for the eighth consecutive month, while the survey's measure of business confidence fell to a four-month low. Respondents reported a stronger increase in input costs but a fourth consecutive reduction in selling prices.
Today's data were somewhat stronger than consensus forecasts, with the China RPI increasing from minus 34 to minus 19 and the RPI-P rising from minus 27 to minus 6, indicating that data are coming in just below market expectations.
Market Consensus Before Announcement
After 51.1 in March, S&P's manufacturing PMI in April is expected to hold in plus-50 ground at 51.0 for a sixth straight month.
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.
