| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.5 | 50.3 to 50.7 | 49.3 | 50.4 |
Highlights
The S&P Global China manufacturing PMI showed renewed contraction in the sector in September after modest expansion the previous month, with the headline index falling to 49.3 from 50.4 in August. Official PMI survey data also published today also showed that conditions in the sector weakened in September.
Respondents to the S&P PMI survey reported output grew only marginally in September, with both new orders and new export orders reported to have fallen in the month. Payrolls were also reported to have been cut, while the survey's measure of business confidence fell to its second lowest level since it was initiated in 2012. The survey also shows input costs and selling prices both fell in September.
Today's data were weaker than the consensus forecast of 50.5 for the manufacturing sector survey's headline index. The China RPI and the RPI-P fell to minus 50 from minus 36 and minus 30 respectively, indicating that recent Chinese data in sum are now coming in further below consensus forecasts.
Respondents to the S&P PMI survey reported output grew only marginally in September, with both new orders and new export orders reported to have fallen in the month. Payrolls were also reported to have been cut, while the survey's measure of business confidence fell to its second lowest level since it was initiated in 2012. The survey also shows input costs and selling prices both fell in September.
Today's data were weaker than the consensus forecast of 50.5 for the manufacturing sector survey's headline index. The China RPI and the RPI-P fell to minus 50 from minus 36 and minus 30 respectively, indicating that recent Chinese data in sum are now coming in further below consensus forecasts.
Market Consensus Before Announcement
After rebounding from a 2-point plunge in July back to expansion at 50.4 in August, the manufacturing PMI for September is expected to tick up to 50.5.
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.
