China Manufacturing, Non-Manufacturing PMIs Contract

The transcript discusses the impact of COVID outbreaks on non-manufacturing PMI, highlighting the sensitivity of service PMI to such disruptions. It explores potential policy offsets, such as construction spending, and the role of infrastructure and manufacturing investments. The discussion also covers sub gauges within PMI data, focusing on domestic versus external demand, employment, and inflation. Finally, it forecasts October activity, suggesting a potential softening compared to September due to a lower manufacturing PMI.

What was the primary reason for the weaker non-manufacturing PMI in October?

• Rising inflation

• COVID outbreaks

• Increased manufacturing output

• Strong export demand

Which sectors are considered bright spots in the economy according to the transcript?

• Retail and tourism

• Technology and healthcare

• Agriculture and mining

• Infrastructure and manufacturing

What challenge does the government face when trying to offset the economic impact of COVID?

• Decreasing foreign investments

• Property market slowdown

• High inflation rates

• Rising unemployment

Which sub-gauge within the PMI data is important for understanding employment trends?

• Inflation rates

• Export orders

• Labor market stability

• Domestic demand

What might the PMI data suggest about October's industrial activity?

• It may be softer than September

• It will remain unchanged

• It will experience a sharp decline

• It will likely increase significantly