China official PMIs for November beat estimates and higher than in October

The manufacturing PMI has come in at 50.2, back into expansion for the first time since April this year.

  • expected 49.5, prior 49.3
  • the new export orders sub-indicator moved to a 7 month high of 48.8

Services (non-manufacturing) improved also, to 54.5 and its highest since March

  •  expected 53.1, prior 52.8

The composite has thus headed higher also, comes in at 53.7

  •  prior 52.0

This is an encouraging indication for China’s economy. Authorities have been adding stimulus (monetary and fiscal), although not on a large scale. It appears to be paying some dividends.

The results should be a positive ‘risk’ input when FX markets reopen Monday. Plenty of time for other news before then to impact though!

The private survey (Caixin / Markit) PMIs follow next week:

  • manufacturing expected 51.2 (due 2 December at 0145GMT)
  • non-manufacturing expected 51.5, prior 51.1 (due 4 December at 0145GMT)
  • composite prior 52.0 (also on the 4the of December at 0145GMT)

The private survey PMIs focus more on smaller, export-orientated firms.


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