Later today we get the latest manufacturing PMI from China, the Caixin/S&P Global Manufacturing PMI for December 2023:
- due at 0145 GMT, which is 2045 US Eastern time
- expected 50.4, prior 50.7
Over the weekend the Chinese government official PMIs, from the National Bureau of Statistics (NBS), were published, with manufacturing a huge disappointment:
On some of the key subindexes:
- new orders sub-index at 48.7, contracting for a third month
- new export orders index were 45.8 in December, contracting for the ninth straight month
- sub-index of factory gate prices was at 47.7, contracting for a third straight month – a further sign of deflation in the economy thsat’ll weigh on business profits
The official non-manufacturing purchasing managers’ index (PMI), was a miss. coming in at 50.4, from 50.5 expected, but on the plus side up from November’s 50.2.
The National Bureau of Statistics (NBS) summed the data up:
- “The current external environment is increasingly complex, severe, and uncertain”
- “Some companies in the survey reported that reduced overseas orders and insufficient domestic effective demand are the main difficulties faced by the companies”
Weak demand, both on- and off-shore, are weighing on China’s economic recovery.
China’s leader Xi Jinping spoke over the weekend, making positive noises but lacking detail:
2024 is a year of the Wood Dragon, starting from February 10th, 2024