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.
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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.