| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 49.7 | 49.7 to 50.0 | 50.3 | 49.3 |
Highlights
The S&P Global China manufacturing PMI showed another month of weak conditions in the sector in October, with the headline index advancing to 50.3 from 49.3 in September, indicating only very modest growth. Official PMI survey published earlier in the week also showed that conditions in the sector remained subdued in October.
Respondents to the S&P PMI survey reported output and new orders rose modestly in October but at the fastest pace in four months, while new export orders were reported to have fallen at a less pronounced pace. Payrolls were reported to have been cut more sharply, but the survey's measure of business confidence rose to a five-month high. The survey also shows input costs and selling prices both rose in October after falling in September.
Today's data were weaker than the consensus forecast of 49.7 for the manufacturing sector survey's headline index. The China RPI and the RPI-P both rose from plus 36 to plus 64, indicating that recent Chinese data in sum are now coming in further above consensus forecasts.
Respondents to the S&P PMI survey reported output and new orders rose modestly in October but at the fastest pace in four months, while new export orders were reported to have fallen at a less pronounced pace. Payrolls were reported to have been cut more sharply, but the survey's measure of business confidence rose to a five-month high. The survey also shows input costs and selling prices both rose in October after falling in September.
Today's data were weaker than the consensus forecast of 49.7 for the manufacturing sector survey's headline index. The China RPI and the RPI-P both rose from plus 36 to plus 64, indicating that recent Chinese data in sum are now coming in further above consensus forecasts.
Market Consensus Before Announcement
The Caixin PMI manufacturing index is expected at 49.7 versus 49.3 in September.
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.
