| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 49.9 | 49.1 to 50.0 | 50.4 | 51.2 |
Highlights
The S&P Global China manufacturing PMI showed slower expansion in the sector in April, with the headline index advancing to a four-month high of 51.2 from 50.8 in February. Official PMI survey also published today showed renewed contraction in the sector in April.
Respondents to the S&P PMI survey reported output, new orders, and new export orders all rose at a slower pace in April, with the latter increasing at the slowest pace in seven months. Respondents cited the impact of the increase in global trade tensions as a significant factor weighing on external demand. Payrolls were also reported to have cut in April after they had been increased for the first time since mid-2023 in March, and the survey's measure of business confidence fell to tis third-lowest level on record, with respondents again citing concerns about trade tensions. The survey also shows input costs fell for the second month in a row and that firms cut selling prices for the fifth consecutive month.
The RPI and RPI-P from plus 30 to plus 51 and from plus 43 to plus 51 respectively, indicating that data are coming in further above market expectations.
Respondents to the S&P PMI survey reported output, new orders, and new export orders all rose at a slower pace in April, with the latter increasing at the slowest pace in seven months. Respondents cited the impact of the increase in global trade tensions as a significant factor weighing on external demand. Payrolls were also reported to have cut in April after they had been increased for the first time since mid-2023 in March, and the survey's measure of business confidence fell to tis third-lowest level on record, with respondents again citing concerns about trade tensions. The survey also shows input costs fell for the second month in a row and that firms cut selling prices for the fifth consecutive month.
The RPI and RPI-P from plus 30 to plus 51 and from plus 43 to plus 51 respectively, indicating that data are coming in further above market expectations.
Market Consensus Before Announcement
Index seen eroding to 49.9 from 51.2 in March.
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.
