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China: Caixin PMI shows output veered back into positive territory - Rabobank

FXStreet (Delhi) – Research Team at Rabobank, suggests that according to the Caixin PMI survey, Chinese output veered back into positive territory again, albeit only barely.

Key Quotes

“The composite PMI came in at 50.1, just above the neutral 50-level, recovering from a dip in December. This rebound mainly seems to follow from a stronger than expected services sector, with the Caixin services PMI gaining 2.2 points to 52.4. (Interestingly enough, the official services PMI actually declined from 54.4 to 53.5.)

Earlier this week, Caixin’s manufacturing PMI already saw a marginal improvement of 0.2 points. Nevertheless, this manufacturing index has been in contractionary territory since March 2015.

The mixed, but on average weaker Chinese data would argue in favour of further PBoC stimulus, and thus risks an acceleration of the ‘race to the bottom’ amongst central banks across the globe, with the ECB and BoJ as main contestants.”

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