This Radar Chart Tells You Everything You Need To Know About China's Bullish PMI Report

Source: http://www.businessinsider.com/chart-china-manufacturing-pmi-sub-indices-2012-10

China's official manufacturing PMI report climbed to 50.2 in October, up from 49.8 in September.  This suggests the industry is expanding again.

Obviously there are a lot of details behind those numbers.

Societe Generale's Wei Yao put all of the PMI sub-indices into one radar chart (see below), and compares them to the sub-indices from two months ago.  Ideally, you want the points of the new polygon to be outside of the points of the old polygon.

Such was the case for the latest PMI report.  Here's Yao:

Details of the official report showed improvement in eight out of the eleven sub-indices. The production index rose by 0.8 point to 52.1 in October; new orders climbed to 50.4, ending a five-month sting of below-50 readings; the input price index jumped to 54.3 from 51 in the previous month, indicating less upstream deflationary pressure. Finished goods inventory inched up to 48.1, pointing to continued destocking albeit at slower pace. Meanwhile, employment, new export orders and imports all increased but remained below 50.

 

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