China official PMI data: Manufacturing 49.8 (expected 49.5)

China National Bureau of Statistics (NBS) data

September PMIs

Manufacturing 49.8

expected 49.5, prior 49.1

Non manufacturing 50.0

expected 50.4, prior 50.3

The focus on this data point today is low, its all about stimulus from China now. Its been ramped up and announcements continued over the weekend:

More stimulus from China over the weekend – banks instructed to cut mortgage rates

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China has two primary Purchasing Managers’ Index (PMI) surveys – the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.

The official PMI survey covers large and state-owned companies, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China’s private sector.Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey.Despite these differences, the two surveys often provide similar readings on China’s manufacturing sector.

This article was written by Eamonn Sheridan at www.forexlive.com.