As always there are two Chinese Purchasing Manager Index reports - the government which focuses on larger, state controlled companies, and the HSBC report which focuses on smaller companies. The Government report is out and we have a reading of 50.4 versus the 51.2 in September. The estimate was 51.7 so this was a bit of a disappointment. That said, for those who love easy money this heartens their case for China to re-engage in easy money policies sooner rather than later; even as the country is dealing with the havoc of many bad loans from their last round of easy money.
- The manufacturing index from the logistics federation and National Bureau of Statistics is based on a survey of purchasing managers in more than 820 companies in 20 industries. The gauge hasn’t fallen below 50, the level dividing expansion from contraction, since February 2009.
- The new orders index fell to 50.5 from 51.3 in September and a measure of output dropped to 52.3 from 52.7. New export orders contracted, declining to 48.6 from 50.9 the previous month, the logistics federation said.
- ...the input prices subindex, an indicator of inflationary pressure, declined to 46.2 from 56.6 in September.