Your 10-second guide to today's China manufacturing PMI report

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This morning China’s government will release its latest manufacturing PMI report for September, something that will likely dictate investor sentiment later in the session.

Here’s the state of play.

  • A PMI gauge has a neutral level of 50, a point where overall activity levels across the sector are neither expanding nor contracting.
  • A level below 50 indicates that activity is contracting while a figure above 50 suggests activity levels are expanding.
  • The NBS PMI report is the most comprehensive report on manufacturing sector conditions in the country, covering 3,200 firms across 31 separate industries.
  • In August the PMI gauge fell to 49.7, the lowest level seen since August 2012.
  • Of the five subcomponents that make up the headline index, two expanded while three contracted.
  • Production fell to 51.7 while supplier delivery times improved to 50.6. Of those below 50 new orders, a lead indicator on likely production levels in the future, along with inventories and employment registered scores of 49.7, 48.3 and 47.9.
  • Reflective of the weakness seen in the separate Caixin-Markit PMI gauge, a report that concentrates on small-to-medium sized firms, the NBS reported that the contraction in smaller firms was far more severe than that for larger firms.
  • Large and medium sized enterprises registered readings of 49.9 and 49.8 respectively, significantly higher than the 48.1 level of smaller firms.
  • In September, activity levels are expected to contract at a faster pace with a decline to 49.6 expected.

The PMI report will be released at 11am AEST. Business Insider will have full coverage as soon as the data drops.

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