China: Feb's manufacturing PMI could be noisy – Citi

Dhwani Mehta FXStreet

In the view of the analysts at Citigroup, the Chinese manufacturing PMI reading is expected to remain in contraction territory in February.

Note that China’s official PMIs by the National Bureau of Statistics (NBS) are due tomorrow at 0100GMT.

Key Quotes:

“Feb's Mfg PMI could be noisy because of the CNY effect, but we expect it to remain below 50. Power plants' coal consumption recovered steadily after the CNY, while steel mills' blast furnace operating rate inched up 1ppt from Jan.

Besides the seasonality, industrial production should be largely stable. New orders, especially new export orders, should still see a weakening bias.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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