| Consensus | Consensus Range | Actual | Previous | |
| Index | 50.0 | 50.0 to 50.5 | 50.3 | 50.1 |
Highlights
The S&P Global China manufacturing PMI showed another month of subdued conditions in the sector in January, with the headline index increasing to 50.3 from 50.1 in December. Official PMI survey published last week also showed ongoing weakness in the sector in January.
Respondents to the S&P PMI survey reported improved output and new orders in January, while new export orders rose slightly after recent weakness. Payrolls were reported to have risen after two months of declines, but the survey's measure of business confidence moderated. The survey also shows input costs rose at a faster pace while selling prices were also increased.
Market Consensus Before Announcement
Manufacturing seen almost flat at 50.0 in January versus 50.1 in December, an uninspiring report for the mighty manufacturing sector.
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.