China’s Manufacturing PMI Improves Slightly in September, External Risks Still Weigh

China's manufacturing PMI posted a slight improvement during the month of September, rising above expectations and indicating expansion.

USD/CNH

China’s manufacturing PMI posted a slight improvement during the month of September, rising above expectations and indicating expansion. The Caixin manufacturing PMI climbed to 51.4 in September from 50.4 in August, and coming in better than the 50.2 reading expected by economists. This was the highest level this figure has touched since February 2018.

However, China’s official manufacturing PMI came in at 49.8 in September, revealing a contraction in this sector for the fifth straight month. However, this figure has improved slightly since August when it stood at 49.5 and has beaten economist expectations which were for a reading of 49.5.

Despite the better than expected readings for both private and official manufacturing PMI readings, China’s economic outlook continues to remain bleak due to continued external risks owing to the ongoing trade war with the US. In addition, a weakening in global economic growth is also expected to weigh heavily on Chinese manufacturing and the overall economy, as its economy is heavily reliant on trade.

On the release of this news, the Chinese yuan rose sharply against the US dollar briefly but has since steadied itself. At the time of writing, USD/CNH is trading at around 7.126.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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