China CNY

China HSBC Manufacturing PMI Final

Impact:
Medium

Latest Release:

Date:
Actual:
49.4
Forecast:
Previous/Revision:
49.2
Period: Jun
What Does It Measure?
The China HSBC Manufacturing PMI Final measures the prevailing business conditions within the manufacturing sector in China, focusing on aspects such as production levels, new orders, supplier delivery times, and employment. It serves as a key indicator of the overall health of the manufacturing industry, with values above 50 indicating expansion and below 50 indicating contraction.
Frequency
This index is released monthly, with the final figure typically published on the first business day of the following month, reflecting adjustments made after preliminary estimates.
Why Do Traders Care?
Traders closely monitor the HSBC Manufacturing PMI Final due to its significance in forecasting economic growth and its impact on the Chinese yuan, commodities, and global stock markets. An unexpected increase in the index can bolster investor confidence and lead to bullish trends in related assets, while a decline may trigger negative reactions across financial markets.
What Is It Derived From?
The index is derived from a survey of purchasing managers across the manufacturing sector, which collects data on various aspects of their operations. The methodology uses a diffusion index formula, where indices for subcomponents are weighted, allowing for a comprehensive view of manufacturing health.
Description
The HSBC Manufacturing PMI Final is distinguished by its focus on manufacturing activity in China, which is critical given the country's role as a major global manufacturing hub. It is considered a leading indicator, often reflecting changes in production trends and economic outlook prior to official economic reports.
Additional Notes
This PMI serves as a coincident indicator of economic activity that can reflect current conditions in the industrial sector. It is particularly relevant in comparing regional manufacturing health against other similar economic indicators, providing insights into both local and global economic trends.
Bullish or Bearish for Currency and Stocks
If the final PMI reading is higher than expected: Bullish for the yuan, Bullish for Stocks. If lower than expected: Bearish for the yuan, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Jul 01, 2015
49.4
49.2
Jun 01, 2015
49.2
 49.1
48.9
 0.1
May 04, 2015
48.9
49.6