China: Manufacturing confidence to stabilise further – TDS

Analysts at TD Securities are expecting a further stabilisation in Chinese manufacturing confidence, albeit at a weak level, with the PMI likely to edge higher to 49.7.

Key Quotes

“We. Government stimulus measures taken together with ongoing hopes of a trade deal will likely have contributed but unfortunately pressure on the sector remains as global growth weakens.”

“Forward looking components of the Jan PMI such as backlog of orders and new orders point to sustained pressure on the manufacturing sector.”