| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.6 | 50.6 to 51.2 | 51.2 | 50.8 |
Highlights
The S&P Global China manufacturing PMI showed improved conditions in the sector in March, with the headline index advancing to a four-month high of 51.2 from 50.8 in February. Official PMI survey published earlier in the week also showed that conditions in the sector improved in March.
Respondents to the S&P PMI survey reported output, new orders, and new export orders all rose at a faster pace in March, with the latter increasing at the fastest pace in just under a year. Payrolls were also reported to have been increased for the first time since mid-2023, albeit marginally, but the survey's measure of business confidence weakened, with respondents citing concerns about trade tensions. The survey also shows input costs fell for the first time since last September and that firms cut selling prices for the fourth consecutive month.
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 steady at plus 57 and plus 100 respectively, indicating that recent Chinese data in sum remain well above consensus forecasts.
Respondents to the S&P PMI survey reported output, new orders, and new export orders all rose at a faster pace in March, with the latter increasing at the fastest pace in just under a year. Payrolls were also reported to have been increased for the first time since mid-2023, albeit marginally, but the survey's measure of business confidence weakened, with respondents citing concerns about trade tensions. The survey also shows input costs fell for the first time since last September and that firms cut selling prices for the fourth consecutive month.
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 steady at plus 57 and plus 100 respectively, indicating that recent Chinese data in sum remain well above consensus forecasts.
Market Consensus Before Announcement
The index is expected to edge down to 50.6 in March from 50.8 in February as slow expansion 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.
