| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 49.7 | 49.5 to 49.8 | 50.5 | 49.5 |
Highlights
The S&P Global China manufacturing PMI showed modest expansion in the sector in August, with the headline index increasing to 50.5 from 49.5 in July. Official PMI survey published on the weekend showed further contraction in the sector in August.
Respondents to the S&P PMI survey reported output and new orders rose in August, but new export orders recorded the its fifth consecutive decline. Payrolls were reported to have been cut in August 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 second consecutive month while selling prices were kept steady.
The headline index was stronger than the consensus forecast of 49.7. The RPI and RPI-P rose from minus 64 to minus 43 and from minus 90 to minus 60 respectively, indicating that data are still coming in well below market expectations.
Respondents to the S&P PMI survey reported output and new orders rose in August, but new export orders recorded the its fifth consecutive decline. Payrolls were reported to have been cut in August 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 second consecutive month while selling prices were kept steady.
The headline index was stronger than the consensus forecast of 49.7. The RPI and RPI-P rose from minus 64 to minus 43 and from minus 90 to minus 60 respectively, indicating that data are still coming in well below market expectations.
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.
