China: Official PMI rises in February - Nomura

Analysts at Nomura note that China’s official manufacturing PMI ticked up to a higher-than-expected 51.6 in February from 51.3 in January (Consensus: 51.2; Nomura: 51.4).

Key Quotes

“The Caixin PMI also rose to a stronger-than-expected 51.7 in February from 51.0 in January (Consensus: 50.8). The leading indicators point to improving momentum.”

“By component, most sub-indices rose in February, led by output, raw material inventory and the employment sub-indices. The new orders and new export orders both rose and remained in expansionary territory, pointing to an improvement in external and domestic demand. The purchasing price sub-index moderated slightly to 64.2, suggesting PPI inflationary may moderate somewhat on a sequential basis but, considering the low base in last February, PPI year-on-year should pick up further this February.”