China: Caixin PMI manufacturing suggests that moderate recovery continues – Danske Bank
|Senior Analyst, Jens Peter Sørensen at Danske Bank, notes that overnight in China, the Caixin PMI manufacturing for September was released which rose marginally from 50.0 in August to 50.1 in September in line with expectations.
Key Quotes
“New orders rose to 50.8 from 50.6.New export orders rose to 50.1 from 49.3, the first print above 50 since November. Overall, the Caixin PMI manufacturing supports our view that the moderate recovery continues. The recovery is driven by (a) fiscal stimuli via infrastructure investments, (b) a recovery in the construction sector due to strong home sales and a reduction in home inventories and (c) a moderate export recovery supported by a 10% weakening of the CNY.
We still expect to see some moderation in the recovery going into 2017 as the stimulus effect fade slightly and the biggest boost to construction should fade.”
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