China’s Caixin Composite PMI came down a little bit in the month of September 2020. According to the latest update, the country’s manufacturing sector index declined by a small amount while services accelerated only modestly. Combined, the manufacturing side worked out to contribute more to the composite than services, so the score for last month dropped to 54.5 from 55.1 in August.
You wouldn’t know it from the press release which covered only the one part:
China’s services activity expanded at the fastest pace in three months in September with a sustained increase in total new business, a Caixin-sponsored survey showed Friday, adding to signs that the sector’s post-epidemic recovery is gathering speed. [emphasis added]
For news outlets that reported on the composite as a whole, it wasn’t much better. Recovery. Up sharply. Soaring. These are the terms you see frequently associated with Caixin’s PMI’s in particular. Technically, you could make the case that these interpretations are being used appropriately. Read more…..
Chart of the Day
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