Official February 2025 PMIs from China’s National Bureau of Statistics (NBS). Both the January and February data are impacted this time of year by the Lunar New Year holidays. These were Jan. 29 to Feb. 12 in 2025. March will provide a clearer reading.
Manufacturing 50.2, beating the median consensus estimate and back into expansion (I posted a look back review of the PMIs here on Friday which explains the one-month dip into contraction in January). This is the highest in three months.
- expected 50.0, prior 49.1
- the employment sub-index stayed below 50 but hit a 22 month high
Services PMI (includes services and construction) 50.4
- expected 50.3, prior 50.2
Composite is 51.1
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Next week we’ll get the privately surveyed Caixin PMIs:
Manufacturing is due on Monday, March 3 at 0145 GMT / 2015 US Eastern time
Services due on Wednesday March 5 at 0145 GMT / 2015 US Eastern time
The PMIs (Purchasing Managers’ Indexes) from China’s National Bureau of Statistics (NBS) and Caixin/S&P Global differ primarily in survey scope, methodology, and focus. Here’s a breakdown of the key differences:
1. Provider and Affiliation
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NBS PMI:
- Compiled by the National Bureau of Statistics of China, a government agency.
- Seen as the official PMI, closely aligned with government policies and priorities.
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Caixin/S&P Global PMI:
- Compiled by Caixin Media in collaboration with S&P Global.
- A private-sector index, often considered more market-driven.
2. Survey Scope
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NBS PMI:
- Focuses on large and state-owned enterprises.
- Covers a broader range of industries, including manufacturing and non-manufacturing sectors (e.g., construction and services).
- Reflects conditions in sectors heavily influenced by government policies and infrastructure spending.
-
Caixin PMI:
- Focuses on small to medium-sized enterprises (SMEs), particularly in the private sector.
- Captures the performance of companies that are more exposed to market-driven forces and less influenced by state interventions.
3. Sample Size and Composition
-
NBS PMI:
- Larger sample size, with about 3,000 enterprises surveyed for the manufacturing PMI.
- Emphasizes state-owned enterprises and larger companies, which tend to dominate traditional industries.
-
Caixin PMI:
- Smaller sample size, surveying around 500 enterprises, with a stronger focus on export-oriented and technology-driven firms.
- Provides insights into the private sector and its responsiveness to global economic conditions.
4. Release Dates
-
NBS PMI:
- Released monthly, typically on the last day of the month.
- Provides separate PMIs for manufacturing and non-manufacturing sectors.
-
Caixin PMI:
- Released a few days later, usually on the first business day of the following month.
- Includes only the manufacturing PMI and services PMI, with no equivalent for non-manufacturing activities like construction.
5. Interpretation and Use
-
NBS PMI:
- Reflects the overall economic landscape, especially trends in industries influenced by government policy.
- Analysts use it to gauge the impact of fiscal and monetary policies on the broader economy.
-
Caixin PMI:
- Viewed as a better indicator of the health of the private sector and market-driven segments of the economy.
- Considered more sensitive to external shocks (e.g., global trade conditions).
6. Key Insights and Differences in Results
- The NBS PMI often reflects policy-driven stability, showing less volatility because it covers sectors cushioned by government support.
- The Caixin PMI can be more volatile, as SMEs are more sensitive to real-time changes in market demand, supply chain disruptions, and global economic shifts.
Why Both Matter:
- NBS PMI offers a macroeconomic view of China’s state-influenced economy.
- Caixin PMI provides a microeconomic perspective of the more market-driven and globally competitive sectors.
By analyzing both, investors and policymakers can obtain a more comprehensive picture of China’s economic health and its underlying dynamics.
