China: Manufacturing PMI to edge marginally higher to 49.5 in Jan - TDS

Analysts at TD Securities are expecting that China’s manufacturing PMI likely edged marginally higher to 49.5 in Jan from 49.4 in Dec.

Key Quotes

“Both the official and Caixin PMIs dropped into contraction territory in Dec. Hopes of a US/China trade deal may have stabilised manufacturing sentiment in Jan, but strong downward forces remain. As such we expect both to remain below the 50 boom/bust level this month. New export orders are likely to remain particularly weak, with small and medium size enterprises under most pressure.”