China's September Caixin manufacturing PMI came in at 50.0 vs. 49.5 expected and August’s 49.2, showing that the country’s manufacturing sector is peeping into the expansion territory.
Earlier on, China's official manufacturing PMI contracted to 49.6 in September from 50.1 seen in August and 50.1 expected, the National Bureau of Statistics (NBS) reported.
Comments from Dr. Wang Zhe, Senior Economist at Caixin Insight Group
“The Caixin China General Manufacturing PMI came in at 50 in September, showing that conditions in the manufacturing sector remained unchanged from the previous month. Factors including the reappearance of Covid-19 in several regions and raw material shortages continued to hurt the economy.”
“Supply in the manufacturing sector continued to shrink, while demand improved. The resurgence of the epidemic in several regions and shortfalls in raw material supplies slowed production at manufacturing companies, with the gauge for output contracting for the second straight month in September.”
Market reaction
AUD/USD keeps its rebound intact after the upbeat Chinese Caixin PMI data, trading close to 0.7200, as of writing. The spot is on a steady recovery mode after Wednesday’s turmoil.
