This is the privately surveyed PMI from Caixin / Markit
Falls into contraction in December at 49.7, first time in contraction since May of 2017)
- expected 50.2
- Nov was 50.2
Comments from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group
- subindex for new orders slid below the breakeven point of 50 for the first time since June 2016, reflecting decreasing demand in the manufacturing sector
- gauge for new export orders remained in contractionary territory, its reading rose marginally
- … That showed external demand remained subdued due to the trade frictions between China and the U.S., while domestic demand weakened more notably.
- employment subindex edged up but remained in contraction
- output subindex rose slightly to above 50, but was still near its lowest level in three years … The drag of weak demand on production may gradually become more evident.
- Stocks of finished goods increased at a slower pace
- stocks of purchased items declined, pointing to companies' growing intention to destock, which may in future disrupt the stability of the manufacturing sector's output.
- It is looking increasingly likely that the Chinese economy may come under greater downward pressure."
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Official PMI was out back on Monday
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I posted earlier on what I thought would be the impact of a poor result for this on the AUD …. sometimes FX is so not rocket science.
