China's Caixin Manufacturing PMI eases to 51.5 in Dec vs. 51.7 expected, Aussie unfazed


China's December Caixin manufacturing PMI came in at 51.5 vs. 51.7 expected and 51.8 last, showing operating conditions improved again last month.

Earlier this week, the purchasing managers' index (PMI) for China's manufacturing sector arrived at 50.2 in December, the National Bureau of Statistics (NBS) reported.

Summary

“The health of China’s manufacturing sector continued to improve in December, with firms registering a further strong rise in output. However, the rate of new order growth eased to a three-month low, and export sales rose only slightly. At the same time, confidence towards the 12-month business outlook remained relatively weak, and staffing numbers stagnated. Nonetheless, a further rise in new work prompted firms to expand their purchasing activity and inventories, which in turn placed further strain on supply chains. Operating expenses rose for the fourth month in a row, albeit marginally, which underpinned a renewed increase in selling prices.

The headline seasonally adjusted Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy – posted 51.5 in December, down from 51.8 in November. The latest figure remained consistent with a modest improvement in the health of the sector, with conditions now strengthening in each of the past five months. That said, the latest PMI reading was the lowest seen since September.

Weighing on the headline index was a softer upturn in total new business at the end of the year. The rate of new order growth was modest, having eased to a three-month low. Panel members suggested that demand both at home and abroad had improved, though export work continued to rise only slightly overall.”

On a bigger-than-expected drop in the Chinese PMI data, the AUD/USD pair remained unperturbed, keeping its range around 0.7020 region.

 

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