China PMIs
Survey of Chinese factories; above 50 means growing.
The basics
Purchasing managers at Chinese factories and service firms are asked whether output, new orders, hiring and prices went up or down last month. The answers are combined into one index.
Above 50 means activity is growing; below 50 means it is shrinking. Because it comes out early in the month, it is one of the first readings of how the economy is doing.
How to read the result
- Above the forecast
- A reading above the forecast often lifts the Australian dollar, copper and Asian shares.
- Below the forecast
- A reading below the forecast often weighs on the Australian dollar, copper and oil.
Going deeper
The official survey leans towards big state firms; the private survey covers more small and export-oriented firms. Chinese New Year distorts January and February.
FAQs
- Why can the price move the “wrong” way?
- Prices already reflect the forecast, so markets react to the surprise, not the number itself. Other parts of the same release, revisions to earlier months or other news in the same hour can outweigh the headline figure, and a first move often reverses within the hour.
- Should I close my trade before the release?
- That is your decision; this page does not give advice. What is certain is that prices can jump in seconds around big releases, spreads widen, and a stop loss can close at a worse price than the one you set. Many traders check their position size and stop before the release.