| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 50.7 | 50.6 to 50.9 | 50.6 | 51.2 |
Highlights
The S&P Global China manufacturing PMI showed weaker expansion in the sector in October, with the headline index falling to 50.6 from 51.2 in September. Official PMI survey published last week showed ongoing and more pronounced contraction in the sector in October.
Respondents to the S&P PMI survey reported output and new orders rose at a slower pace in October, while new export orders fell at the sharpest pace since May. Payrolls were reported to have been increased slightly in October but the survey's measure of business confidence weakened to its lowest level in six months. The survey also shows input costs rose at a slower pace while selling prices fell for the second consecutive month.
The headline index was close to the consensus forecast of 50.7. The China RPI and the RPI-P fell from minus 9 to minus 16 and from minus 3 to minus 11 respectively, indicating that recent Chinese data in sum are still coming in just below consensus forecasts.
Respondents to the S&P PMI survey reported output and new orders rose at a slower pace in October, while new export orders fell at the sharpest pace since May. Payrolls were reported to have been increased slightly in October but the survey's measure of business confidence weakened to its lowest level in six months. The survey also shows input costs rose at a slower pace while selling prices fell for the second consecutive month.
The headline index was close to the consensus forecast of 50.7. The China RPI and the RPI-P fell from minus 9 to minus 16 and from minus 3 to minus 11 respectively, indicating that recent Chinese data in sum are still coming in just below consensus forecasts.
Market Consensus Before Announcement
Slightly weaker growth expected with the PMI at 50.7 for October, off from 51.2 in September.
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.
