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In the view of the analysts at Citigroup, the Chinese manufacturing PMI reading is expected to remain in contraction territory in February.

Note that China’s official PMIs by the National Bureau of Statistics (NBS) are due tomorrow at 0100GMT.

Key Quotes:

“Feb’s Mfg PMI could be noisy because of the CNY effect, but we expect it to remain below 50. Power plants’ coal consumption recovered steadily after the CNY, while steel mills’ blast furnace operating rate inched up 1ppt from Jan.

Besides the seasonality, industrial production should be largely stable. New orders, especially new export orders, should still see a weakening bias.”