| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.0 | 49.6 to 50.1 | 50.4 | 49.8 |
Highlights
The S&P Global China manufacturing PMI showed modest expansion in the sector after marginal contraction the previous month, with the headline index increasing to 50.4 from 49.8 in July. Official PMI survey data published on the weekend showed that conditions in the sector were close to stagnant in August.
Respondents to the S&P PMI survey reported output grew in August for the tenth consecutive month and at a pace up from July, with new orders rebounding after they had fallen for the first time in a year. Respondents, however, reported a small decline in new export orders. Payrolls were reported to have been close to steady in August after having fallen over most of the last year, while the survey's measure of business confidence rose to a three-month high. The survey also shows a small fall in input costs and selling prices in August.
Today's data were above the consensus forecast of 50.0. The China RPI and RPI-P rose from minus 29 and minus 60 to minus 7 and minus 30 respectively, indicating that data are now coming in closer to market expectations.
Respondents to the S&P PMI survey reported output grew in August for the tenth consecutive month and at a pace up from July, with new orders rebounding after they had fallen for the first time in a year. Respondents, however, reported a small decline in new export orders. Payrolls were reported to have been close to steady in August after having fallen over most of the last year, while the survey's measure of business confidence rose to a three-month high. The survey also shows a small fall in input costs and selling prices in August.
Today's data were above the consensus forecast of 50.0. The China RPI and RPI-P rose from minus 29 and minus 60 to minus 7 and minus 30 respectively, indicating that data are now coming in closer to market expectations.
Market Consensus Before Announcement
After unexpectedly falling 2 points to 49.8 in July, S&P's manufacturing PMI in August is expected to recover marginally to breakeven 50.0.
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.
