China Sales Survey Holds Steady After Giving Up Summer Gains In September

The Evercore ISI China Sales Survey was choppy in April and May before improving throughout the Summer. September was softer, as the index pulled back due to moderation from chemical and tech cos., before holding steady at 31.7 to begin October. Our breadth indicator for this series, the CSDI: China Sales has been mixed this year, deteriorating in March and April before stabilizing in May and improving in June and July, while August and September were both negative. The mfg. PMI has been choppy but has shown improvement recently. The survey is made up of U.S. multinationals and captures sales of goods & services produced and sold in China as well as goods exported to China. The sample is 67% manufacturers & sellers of capital goods and heavy industry products and services (e.g., cap goods, chemicals, E&C, tech);