Silver prices are on recovery after several countries recorded an expansion of their manufacturing economies. On Monday, the precious metal was up by 0.59% to trade at $26.8280. In Japan, February’s manufacturing PMI is better than analysts’ forecast and January’s figure. While China’s reading missed the beat, it still signified an expansion of its manufacturing economy. Bulls in the silver market are now waiting to see if the US Senate will approve the $1.9 trillion relief package passed by the Congress.
Manufacturing PMI data
Silver prices are reacting to the data on the manufacturing PMI in economies like China and Japan. The figures released on Sunday indicate that China’s manufacturing economy grew at a slower rate in February compared to the previous month.
Experts had predicted that the manufacturing PMI would be at 51.1. This would have been 2 points lower than the prior month’s reading. However, the figure came in lower at 50.6. The composite PMI also declined from January’s 52.8 to 51.6.
On Monday, IHS Markit highlighted a similar trend. February’s Caixin manufacturing PMI was 50.9 compared to January’s 51.5. Analysts had forecasted that the figure will remain unchanged. In both cases, February’s manufacturing PMI is the lowest since May 2020.
The drop is largely due to disruption of activities in factories during the recent Lunar New Year. This seasonal decline should not be a cause of alarm. It is common for commercial operations to slow down during this week-long annual holiday as workers go home to celebrate with family. Besides, the manufacturing PMI is still above 50. This is an indication that China’s manufacturing economy is still expanding, which is bullish for silver prices.
The manufacturing PMI in
