Caixin PMI rises to 50.4 in August, contrasting official data at 49.1

  • Caixin manufacturing PMI rose to 50.4 in August from 49.8 in July
  • Private gauge contrasts with official data showing a decline to 49.1 in August
  • Factory production rose for a 10th consecutive month
  • Total new orders returned to growth while export orders fell for the first time in eight months
  • Employment stabilized after an 11-month contraction
  • Surveyed businesses expressed confidence in the 12-month market outlook with limited optimism toward future output expectations

The Caixin manufacturing purchasing managers index rose to 50.4 in August compared with 49.8 in July, according to data released by Caixin Media Co. and S&P Global. This contrasts with the official reading that showed a decline to 49.1 in August from 49.4 in July, reaching a six-month low below the 50-point threshold separating expansion from contraction. The improvement in the private gauge could be a sign of the resilience of smaller manufacturers in China. Factory production rose for a 10th consecutive month in August, thanks to expansion in the consumer and intermediate goods sectors, said Caixin. Demand also picked up, with total new orders returning to growth while export orders fell for the first time in eight months. On the back of improving output and demand, employment stabilized in August after an 11-month contraction. Surveyed businesses expressed confidence in the 12-month market outlook but limited optimism toward future output expectations. Key issues such as insufficient domestic demand persist, said Wang Zhe, a senior economist at Caixin Insight Group.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the Caixin manufacturing PMI data and its comparison with the official reading. It also discusses the factors affecting the manufacturing sector in China, such as factory production, new orders, export orders, and employment. The article includes expert opinions from Wang Zhe, a senior economist at Caixin Insight Group, which adds credibility to the information presented.
Noise Level: 6
Noise Justification: The article provides relevant information about the Caixin manufacturing PMI and its comparison with the official reading, but it lacks in-depth analysis or exploration of the underlying reasons behind the contrasting results. It also contains some filler content such as the advertisement at the end.
Public Companies: S&P Global (SPGI)
Private Companies: Caixin Media Co.
Key People: Wang Zhe (senior economist at Caixin Insight Group)

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Financial Relevance: Yes
Financial Markets Impacted: China’s manufacturing sector
Financial Rating Justification: The article discusses China’s manufacturing PMI, which is a financial indicator, and its impact on the country’s economy. It also mentions the contrast between official data and the private gauge, indicating that smaller manufacturers are more resilient. This information can have an effect on financial markets and companies in the sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
Move Size: No market move size mentioned.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks

Image source: Jashuah / Own work by uploader, data from Federal Reserve Bank of St. Louis

Reported publicly: www.wsj.com