| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.6 | 50.6 to 50.6 | 51.5 | 50.3 |
Highlights
The S&P Global China manufacturing PMI showed some improvement in conditions in the sector in November, with the headline index advancing to a five-month high of 51.5 from 50.3 in October. Official PMI survey published over the weekend showed that conditions in the sector remained very subdued in November.
Respondents to the S&P PMI survey reported output and new orders rose at a faster pace in November, while new export orders were reported to have rebounded after three consecutive declines. Payrolls were reported to have been cut for a third consecutive month, albeit only modestly, but the survey's measure of business confidence rose to its highest level since March. The survey also shows input costs and selling prices both rose in November at the fastest pace in several months.
Today's data were stronger than the consensus forecast of 50.6 for the survey's headline index. The China RPI and the RPI-P were unchanged at minus 29 and minus 20 respectively, indicating that recent Chinese data in sum are now coming in below consensus forecasts.
Respondents to the S&P PMI survey reported output and new orders rose at a faster pace in November, while new export orders were reported to have rebounded after three consecutive declines. Payrolls were reported to have been cut for a third consecutive month, albeit only modestly, but the survey's measure of business confidence rose to its highest level since March. The survey also shows input costs and selling prices both rose in November at the fastest pace in several months.
Today's data were stronger than the consensus forecast of 50.6 for the survey's headline index. The China RPI and the RPI-P were unchanged at minus 29 and minus 20 respectively, indicating that recent Chinese data in sum are now coming in below consensus forecasts.
Market Consensus Before Announcement
After recovering into expansion territory at 50.3 in October, the consensus looks for the Caixin manufacturing PMI to improve further to 50.6 in November.
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.
