China Caixin/Markit Manufacturing PMI for June 51.3, down on the month and missing estimate. Still a decent clip of expansion though.
expected 51.8, prior 52.0
- From yesterday out of China: China official PMIs for June. Manufacturing 50.9 (vs. expected 50.8), Services 53.5 (expected 52.7)
51.3 is a 3 month low
- 14th month straight in expmanison
- Export sales stagnated
- employment continued to rise
- easing cost pressures
From the report, summary comments:
- Overall, the manufacturing sector continued to stably expand in June, despite the impact of the pandemic. Both demand and supply in the sector remained stable, as did external demand, showing the momentum of economic recovery still remained in the post-epidemic period. The job market continued to improve and businesses were highly optimistic, with the measure for future output expectations in June higher than the longterm average. Inflationary pressures eased somewhat, but manufacturing enterprises' purchasing prices and factory-gate prices still rose. The shortage of raw materials continued in some regions. The manufacturing sector has gradually returned to normal. In the second half of this year, the low base effect from last year will weaken. Inflationary pressure, coupled with the economic slowdown, is still a serious challenge for China.
