From the course: Economic Indicators

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China PMI

China PMI

From the course: Economic Indicators

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China PMI

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- There's a lot of economic data from the United States and the Eurozone that analysts, strategists, and investors rely on. But Chinese data is often viewed with more skepticism. One piece of data that offers tremendous insights into the health of the Chinese economy is the Chinese Caixin Manufacturing Purchasing Manager Index or PMI. This is the most important piece of Chinese economic data. PMIs are surveys of purchasing managers that work at manufacturing firms. When they buy more stuff, when they purchase more, that means they likely have orders in the pipeline. When those orders get filled they contribute positively to economic growth to GDP. In a manufacturing heavy economy, like China, a manufacturing PMI is particularly important and in China there are two manufacturing PMIs. The official Government Manufacturing PMI Survey of large Chinese manufacturers and the privately compiled Caixin Manufacturing PMI Survey of small and medium size manufacturers. While the source of this…

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