China’s manufacturing PMI in December
China’s manufacturing PMI (purchasing managers’ index) report for December 2017 indicates softer improvement in manufacturing activity in December compared to November 2017. This metric stood at 51.6 in December compared to 51.8 in November 2017, which was in line with the market’s expectation of 51.6.
Let’s analyze some of the key components of China’s manufacturing PMI in December:
- Production volume and output showed a weaker rise in December 2017. It stood at 54.0 in December compared to 54.3 in November 2017.
- New order growth stood at 53.4 in December compared to 53.6 in November 2017. However, export orders improved strongly in December, rising to 51.9 compared to 50.8 in November 2017.
- Employment in the manufacturing sector contracted in December, falling to 48.5 during the month compared to 48.8 in November. A level below 50.0 indicates contraction in activity.
The weaker manufacturing PMI is a major concern for China’s economy. The country’s economy needs to display improvement in domestic demand to support its growth.
Performance of major ETFs in December
In the next part of this series, we’ll analyze the performance of China’s services PMI in December 2017.