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

Posted Monday, September 30, 2019 by
Arslan Butt • 1 min read

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.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
GBP/USD is testing the 200 daily SMA for the second time, which held for the second time last Friday
3 months ago
USD/CAD surged 150 pips higher today as the USD buyers returned, although it's the first trading day of 2023
5 months ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments