Caixin PMI drops to neutral after hitting 8-month high
The China Caixin PMI is derived from a survey of 430 industrial companies and measures the manufacturing sector's performance. It is based on a weight of five subindexes: new orders (30%), output (25%), employment (20%), supplier delivery time (15%), and items purchased (10%)
It fell to 50, which separates expansion from contraction (red ellipse) for February, from 51.60, which was an eight-month high.
The sub-indexes for both output and total new orders remained above 50, but decreased by over two points compared to February. Additionally, there was a decline in external demand due to the global economic downturn, resulting in the sub-index tracking new export orders falling below 50.
Moreover, Caixin mentioned that employment in China's manufacturing sector worsened in March, with the sub-index measuring factory hiring falling into contraction territory. This decline came after it had risen above the 50 mark in February for the first time since March 2022.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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