China Non-Manufacturing PMI

China’s Non-Manufacturing PMI is a survey-based diffusion index covering activity outside manufacturing, principally services and construction. It is not a direct measure of GDP or retail sales. The 50 threshold generally separates expansion from contraction in the survey, while sub-indices for new orders, employment, input prices and business expectations reveal where momentum is coming from. The construction component can be affected by infrastructure and property activity, while services reflect consumption, travel and business demand. Read the result with the manufacturing PMI, composite PMI, retail sales, fixed-asset investment and property data. A surprise can change views on China’s domestic activity and global risk sentiment, but one survey should not be mistaken for an announced policy change or a guaranteed move in CNY.