| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.2 | 49.6 to 50.2 | 51.2 | 50.5 |
Highlights
The S&P Global China manufacturing PMI showed stronger expansion in the sector in September, with the headline index increasing to 51.2 from 50.5 in August. Official PMI survey also published today, in contrast, showed further contraction in the sector in September.
Respondents to the S&P PMI survey reported output and new orders rose at a faster pace in September, while new export orders rose after five consecutive declines, albeit marginally. Payrolls were reported to have been cut in September 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 at the fastest pace in ten months while selling prices were reduced slightly.
The headline index was stronger than the consensus forecast of 50.2. The China RPI and the RPI-P rose from minus 14 to minus 7 and from minus 30 to minus 20 respectively, indicating that recent Chinese data in sum are still coming in below consensus forecasts.
Respondents to the S&P PMI survey reported output and new orders rose at a faster pace in September, while new export orders rose after five consecutive declines, albeit marginally. Payrolls were reported to have been cut in September 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 at the fastest pace in ten months while selling prices were reduced slightly.
The headline index was stronger than the consensus forecast of 50.2. The China RPI and the RPI-P rose from minus 14 to minus 7 and from minus 30 to minus 20 respectively, indicating that recent Chinese data in sum are still coming in below consensus forecasts.
Market Consensus Before Announcement
Rating Dog PMI index to remain barely in expansion at 50.2 in September versus 50.5 in August.
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.
