China: Manufacturing PMI to edge higher to 49.9 in October – TDS

Analysts at TD Securities are expecting China's official manufacturing PMI to edge higher to 49.9 in October from 49.8 previously.

Key Quotes

“The US-China trade ceasefire will have helped to put a floor under the PMIs. China appears to have opened the credit taps further over recent weeks, with monetary aggregates accelerating, giving more support to manufacturers via easing liquidity pressures.”

“Finally, although the CNY has strengthened vs. USD it has weakened to multi-year lows on a trade weighted basis (CFETS), a factor that will provide another source of relief to manufacturers.”