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23 Apr 2014
Have Chinese PMIs bottomed out? – Danske Bank
FXStreet (Edinburgh) - Pernille Nielsen, Analyst at Danske Bank, expects the Chinese manufacturing PMI to return above the 50 threshold in the upcoming months.
Key Quotes
“In China the flash estimate for Markit/HSBC manufacturing PMI in April improved slightly to 48.3 from a final reading of 48.0 in March”.
“The details were mixed with new orders improving to 47.7 from 46.5 but export orders declined to 49.3 from 51.3 in March”.
“Inventories of finished goods also continued to increase in April albeit at a slower pace than in March”.
“Overall it appears that China's manufacturing PMIs have bottomed out. However, the relatively weak details suggest the rebound will be modest in the coming months, so the Markit/HSBC manufacturing PMI will probably not be above 50 until July or August”.
Key Quotes
“In China the flash estimate for Markit/HSBC manufacturing PMI in April improved slightly to 48.3 from a final reading of 48.0 in March”.
“The details were mixed with new orders improving to 47.7 from 46.5 but export orders declined to 49.3 from 51.3 in March”.
“Inventories of finished goods also continued to increase in April albeit at a slower pace than in March”.
“Overall it appears that China's manufacturing PMIs have bottomed out. However, the relatively weak details suggest the rebound will be modest in the coming months, so the Markit/HSBC manufacturing PMI will probably not be above 50 until July or August”.