OPEC Monthly Oil Market Report – October 2017
Caixin Manufacturing PMI
in China fell to 51.0 in September from 51.6 in the previous month and
missing market consensus of 51.5. It was the weakest expansion of the manufacturing sector since June, as
both output and new orders rose the least in three months while growth in export sales slowed. At the same
time, inflationary pressures picked up, with output prices and input costs hitting their highest level seen this
official Non-Manufacturing PMI
in China rose to 55.4 in September 2017 from 53.4 in the preceding
month. It was the strongest growth in services activity since May 2014, as new orders growth accelerated
significantly (reaching 52.3 from 50.9 in August) and business sentiment strengthened markedly (rising to
61.7 from 61.0). At the same time, new export orders and employment both improved from a month earlier,
respectively rising to 49.7 from 49.0 and increasing to 49.7 from 49.5, but remaining in contraction territory.
rose to 52.7 in August 2017 from 51.5 in July and beating the market consensus
of 51.8. It was the fastest rise in services activity since May, as new orders increased solidly, employment
went up the most in four months and business confidence strengthened. At the same time, the backlog
accumulation rose the least in four months.
Graph 3 - 30: Chinese PMIs
Graph 3 - 31: Chinese industrial production
China's industrial production
increased 6.0% y-o-y in August, down from the 6.4% increase in the
previous month. It was the weakest gain in industrial production since December, as output increased at a
slower pace for electricity, gas and water production, and fell further for mining. In the meantime,
manufacturing output grew further (6.9% from 6.7% in July).
Sources: Caixin, IHS Markit and Haver Analytics.
% change y-o-y
Sources: China National Bureau of Statistics and