top of page

China's Caixin PMI Sustains Growth, Signaling Stabilization Amid Economic Challenges

The Caixin Manufacturing Purchasing Managers Index (PMI) in China indicated growth for the third consecutive month in January, holding steady at a rate of 50.8, mirroring December's figure and slightly surpassing the forecasted consensus of 50.6.

This marks the third successive month that the Caixin PMI has remained above the 50-point threshold, suggesting continued improvement in the manufacturing sector with increases in both supply and demand, despite ongoing deflationary pressures. The Caixin PMI continues to outperform the official PMI figure, which was released yesterday and showed a contraction for the fourth month in a row in January, remaining below 50. Our Take: China appears to be stabilizing despite overall modest growth and persistent deflationary pressures. The improvement is in line with the OECD's leading indicator, which has signaled an uptick in activity for several months. Anticipating more economic stimulus this year, we believe there is a strong likelihood of further improvement. However, this positive outlook does not seem to be fully reflected in Chinese equity prices yet.


bottom of page