China's December Caixin manufacturing PMI came in at 50.9 vs. 50.0 expected and November’s 49.9, showing that the country’s production increases at the quickest rate for a year.
China's official manufacturing PMI on Friday expanded to 50.3 in December from 50.1 booked in November and against 50.1 expected, the National Bureau of Statistics (NBS) reported.
Comments from Dr. Wang Zhe, Senior Economist at Caixin Insight Group
“The index returned to expansionary territory and reached the highest level since June.”
“Supply was strong and demand rebounded. With the easing of supply constraints, output expanded for the second month in a row and at a faster pace.”
“Total new orders increased, the third expansion over the past four months, as the impact of scattered Covid-19 flare-ups was under control. Overseas demand remained sluggish because of the pandemic’s impact in foreign countries and rising logistics costs due to a shortage of containers. The gauge for new export orders stayed in contractionary territory for the fifth consecutive month.”
Market reaction
AUD/USD keeps its recovery mode intact above 0.7200 on the upbeat Chinese Caixin PMI data, trading at 7203, as of writing. The spot is up 0.15% on the day.
