China Caixin manufacturing PMI continues to contract in February
The Caixin/Markit Manufacturing purchasing managers’ index (PMI) for February came in at 49.9 points, rising from the 48.3 points in January, but was still below the 50-mark which separates contraction and expansion.
A private survey on China’s manufacturing sector showed factory activity among smaller Chinese continuing to contract for the third-straight-month in February. However, some signs of recovery could be in sight as last month’s factory activity was above economist’s expectations and improved from the previous month’s decline.
The Caixin/Markit Manufacturing purchasing managers’ index (PMI) for February came in at 49.9 points, rising from the 48.3 points in January. Economists in a Reuters poll had expected the sector to fall below the 50-mark that separates expansion and contraction, at a reading of 48.5 points.
New orders moved into expansionary territory in February at 50.2 points, compared with January’s 47.3 points and output prices grew for the first time in four months. However, new export orders fell last month after a brief rebound in January and purchasing activity fell for the second consecutive month.
The private sector survey results were less pessimistic compared to the official PMI numbers released on Wednesday which showed China’s manufacturing sector worsening from the previous month to contract for the third straight month in February, falling below analysts’ expectations.
China has been broadly affected by the weakened trade due to the United States (US)-Sino trade conflict while it copes with slowing domestic demand.
Final trade deal between the US and China could surface this month
US officials are reported to be preparing a final trade deal both leaders can sign in weeks and the US is targeting a summit between the two leaders as soon as mid-March, people familiar with the matter told Bloomberg on Friday.
The US has been clearing hurdles in the negotiations to put an end to the trade war between both countries, while trying to barter for terms that work to benefit American firms.
On Sunday, US president Donald Trump said the US will delay the increase in the remaining US$200 billion worth of US tariffs on Chinese imports scheduled for March 1st. Markets had rallied with the positive developments.
China’s growth for last year slipped to the lowest annual rate since the 1990s while its 2018 fourth quarter growth slowed to the weakest since the global financial crisis, as domestic and foreign demand slackened amid the country’s trade conflict with the US.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
