The Caixin PMI is the private survey, which is different from the official survey. In brief, the Caixin surveys smaller firms
A 0.9 fall from the previous and a miss on the expected, in at 50.3 for the month. A 7 month low.
- expected 51.3
- prior 51.2
In brief:
- Employment across the sector declined at the fastest pace since the start of the year
- Slower increases in output and new orders were key factors
- Production growth softened for the second month running and rose only marginally overall
- Total new business rose at weakest pace since last September
- Softer growth in total new orders coincided with the slowest increase in new work from abroad in 2017 so far
- Some companies commented that relatively muted customer demand had weighed on growth
- Manufacturers continued to reduce their workforce numbers at the start of the second quarter. Furthermore, the rate of payroll cuts was the fastest seen since January. According to anecdotal evidence, lower employment was due to cost-cutting initiatives as well as the nonreplacement of voluntary leavers. This in turn contributed to a further increase in the level of work-in-hand (but not yet completed), though the rate of accumulation was modest.
- Cost pressures continued to ease in April, with the rate of input price inflation softening to a seven-month low. As a result, companies raised their prices charged at a modest rate that was the weakest since last August.
- Companies generally expect output to increase over the next year. However, the degree of confidence was the lowest seen in 2017 so far and below the historical average.
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A tepid expansion in the PMI. We better get accustomed to this as 'stimulus' is wound back a little in China as the focus switches more to deleveraging and reform efforts.
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Over the weekend we got the official PMIs weakening a little also:
- manufacturing
- services
