Caixin China PMI Mfg (Feb): 40.3 (est 46, prev 51.1)

Ross J Burland FXStreet

Caixin China PMI Mfg (Feb) has been released and is below contraction territory, as to be expected considering the coronavirus impact on the economy.

Caixin China PMI Mfg (Feb)

40.3 (est 46, prev 51.1). This data shows that Production, New Orders Collapse, Employment all shrinks at the sharpest pace on record

There has been less of a shock in this data considering the weekend's official February manufacturing PMI plunging 14.3 points to 35.7 – a record low. "This is one of the first pieces of Chinese economic data reflecting the impact of COVID-19, and it was weaker than expected, weaker than the previous low of 38.8 in November 2008. The non-manufacturing index also fell sharply, down 24.5 points to 29.6 – a record low," analysts at Westpac explained.

Description

The Caixin China Manufacturing PMI™, released by Markit Economics, is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies.

Market implications

AUD/USD: Bid tone intact despite below-forecast China Caixin PMI

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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