| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.4 | 50.3 to 50.8 | 50.8 | 50.1 |
Highlights
The S&P Global China manufacturing PMI showed subdued but slightly stronger conditions in the sector in February, with the headline index advancing to 50.8 from 50.1 in January. Official PMI survey published over the weekend also showed that conditions in the sector improved in February.
Respondents to the S&P PMI survey reported output and new orders rose at a faster pace in February, while new export orders were reported to have risen for the first time in three months. Payrolls were reported to have been cut for the sixth consecutive month, but the survey's measure of business confidence improved. The survey also shows input costs rose at a modest pace in February and that firms cut selling prices for the third consecutive month.
Today's data were stronger than the consensus forecast of 50.4 for the survey's headline index. The China RPI and the RPI-P rose from minus 22 to minus 14 and from minus 41 to minus 30 respectively, indicating that recent Chinese data in sum remain below consensus forecasts.
Respondents to the S&P PMI survey reported output and new orders rose at a faster pace in February, while new export orders were reported to have risen for the first time in three months. Payrolls were reported to have been cut for the sixth consecutive month, but the survey's measure of business confidence improved. The survey also shows input costs rose at a modest pace in February and that firms cut selling prices for the third consecutive month.
Today's data were stronger than the consensus forecast of 50.4 for the survey's headline index. The China RPI and the RPI-P rose from minus 22 to minus 14 and from minus 41 to minus 30 respectively, indicating that recent Chinese data in sum remain below consensus forecasts.
Market Consensus Before Announcement
Forecasters look for the index to edge up to 50.4 in February from 50.1 in January as a tentative recovery continues.
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.
