Chinese PMI’s still not good enough – Nomura

By FXStreet FXStreet (Guatemala) – Analysts at Nomura noted that the The better-than-expected official PMI does not signal a growth stabilisation.

Key Quotes:

Key Quotes:

“Official PMI was better than expected at 49.8 in September, up from 49.7 in August and led mainly by output and new orders sub-indexes.

“However, we do not think this signals a growth stabilisation, and forecast industrial production growth slowing slightly to 5.9% y-o-y in September from 6.1% in August.

We also see downside risks to our GDP growth forecast of 6.9% y-o-y for H2 and 6.7% in 2016.

We expect policy to remain accommodative in Q4, with fiscal policies playing a larger role and one more 50bp bank reserve requirement ratio (RRR) cut, likely in October.”
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Source:: FX Street