Official Chinese manufacturing PMI jumps above 50 pts
PMI for small and private companies confirms improvement
Some warning signs can be spotted in private data
Official Chinese PMI indices for November were released on Saturday. An improvement was spotted in manufacturing and services sectors. Manufacturing gauge jumped 0.9 pts to 50.2 pts. This was the highest reading since March and the first since April to show manufacturing index above the contraction/expansion threshold of 50 pts. A point to note is that this improvement was confirmed by Caixin PMI index released today as it moved to 51.8 pts. Solid readings signal that stimulus measures undertaken by the Chinese government earlier this year may be taking effect. However, a signal-month reading is not enough to call a turnaround therefore investors should wait for a confirmation in December and January. While official PMIs, that track big and state-owned enterprises, showed improvement in almost all subindices, data from private enterprises released today showed that output and new orders subindices declined against the previous month. Nevertheless, markets seem to be buying “recovery” rhetoric with stock market indices all around the world trading higher at the beginning of a new week.
An improvement was spotted in almost every subindex of the official Chinese PMI for November. However, rebound in new orders is not mirrored in the data for small and private companies. Source: Bloomberg
This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.