| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.2 | 49.5 to 50.8 | 49.5 | 50.4 |
Highlights
The S&P Global China manufacturing PMI showed renewed contraction in the sector in July, with the headline index falling to 49.5 from 50.4 in June. Official PMI survey published earlier in the week also showed contraction in the sector in July.
Respondents to the S&P PMI survey reported output, new orders, and new export orders all fell in July, with the latter recording its fourth consecutive decline. Payrolls were also reported to have been cut in July but the survey's measure of business confidence shows that respondents expect output to rise from current levels over the next twelve months. The survey also shows input costs rose for the first time in five months but that respondents again lowered their selling prices.
The headline index was weaker than the consenus forecast of 50.2. The RPI and RPI-P fell from minus 7 and minus 17 respectively to minus 29, indicating that data are coming in further below market expectations.
Respondents to the S&P PMI survey reported output, new orders, and new export orders all fell in July, with the latter recording its fourth consecutive decline. Payrolls were also reported to have been cut in July but the survey's measure of business confidence shows that respondents expect output to rise from current levels over the next twelve months. The survey also shows input costs rose for the first time in five months but that respondents again lowered their selling prices.
The headline index was weaker than the consenus forecast of 50.2. The RPI and RPI-P fell from minus 7 and minus 17 respectively to minus 29, indicating that data are coming in further below market expectations.
Market Consensus Before Announcement
The consensus sees the index at 50.2 in July versus 50.4 in June.
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.
