| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Composite Index | 51.1 | 50.1 | ||
| Manufacturing Index | 50.2 | 49.1 | 50.0 | 50.0 to 50.0 |
| Non-Manufacturing Index | 50.4 | 50.2 | 50.3 | 50.3 to 50.5 |
Highlights
Official Chinese PMI survey data show improved conditions in China's aggregate economy in February. The headline index for the CFLP manufacturing rose from 49.1 in January to 50.2 in February, indicating modest expansion in the sector, while the non-manufacturing PMI from 50.2 to 50.4. The composite index covering the entire economy rose from 50.1 in January to 51.1 in February.
The headline index for the manufacturing and non-manufacturing PMIs were just above the consensus forecasts of 50.0 and 50.3 respectively. The RPI and RPI-P were unchanged at minus 22 and minus 41 respectively. indicating that data are still coming in below market expectations.
The headline index for the manufacturing and non-manufacturing PMIs were just above the consensus forecasts of 50.0 and 50.3 respectively. The RPI and RPI-P were unchanged at minus 22 and minus 41 respectively. indicating that data are still coming in below market expectations.
Market Consensus Before Announcement
Manufacturing is expected up at 50.0 from 49.1 and services at 50.3 from 50.2.
Definition
China Federation of Logistics and Purchasing (CFLP) Manufacturing Purchasing Managers Index (PMI) is the monthly survey of about 800 purchasing managers that is conducted jointly by CFLP and National Bureau of Statistics (NBS). The questions focus on the health of the manufacturing sector. The numeric result is a diffusion index. A reading above 50 indicates that manufacturing is growing. A reading below 50 indicates contraction.
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 CLFP 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 survey tends to have a greater impact when it is released prior to the HSBC/Markit manufacturing PMI because the two reports are correlated.
