Caixin China Manufacturing PMI (February 2025) improves to 50.8, well above expected:

  • expected 50.3, prior 50.1

In summary:

  • Manufacturing continued to expand in February, with output and new orders reaching three-month highs. Export orders rebounded after two months of decline.

  • Workforce numbers fell for the sixth straight month as firms prioritized cost-cutting and efficiency, leading to rising backlogs.

  • Input costs rose slightly, driven by copper and chemical prices, while output prices fell for the third consecutive month due to discounts and promotions.

  • Logistics improved post-Chinese New Year, with better supplier delivery times and increased purchasing activity, though raw material inventories dipped.

  • Businesses remain hopeful about future growth, but concerns over employment and household income continue to weigh on domestic demand. March is seen as a key policy window to address economic challenges and boost consumer confidence.

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Over the weekend had the official PMIs showing a little improvement:

Source: Forex Live