Terrible result, follows the poor results from official survey released earlier.

  • Output and new work intakes decline for first time since January
  • Renewed reduction in export sales
  • Goods producers cutback input purchasing and payroll numbers


  • the second lowest since June 2016
  • clear contraction in the manufacturing sector
  • subindex for new orders slid into contractionary territory, pointing to notably shrinking domestic demand
  • new export orders returned to contractionary territory, but was better than the levels seen from last April to last December. Front-loading by exporters was likely to support this gauge as the China-U.S. trade relationship was under great uncertainty.
  • output subindex fell into contractionary territory
  • employment subindex remained relatively stable in negative territory, likely due to government policies to stabilize the job market. The State Council set up a leading group on employment in late May
  • subindex for stocks of purchased items remained slightly higher than the 50 mark that divides expansion from contraction, the measure for stocks of finished goods stayed in contractionary territory, indicating that manufacturers were reluctant to replenish them. The subindex of suppliers' delivery times stayed in contractionary territory, pointing to delayed delivery and also suggesting relatively low inventory levels and willingness to restock. 4
  • input costs and output prices both edged up into expansionary territory. Due to supply-side structural reform, prices of industrial products remained stable.
  • subindex measuring sentiment toward future output plunged further, albeit staying in expansionary territory, a reflection of continuously weakening business confidence amid the Sino-U.S. trade conflict.
  • Overall, China's economy came under further pressure in June. Domestic demand shrank notably, foreign demand was still underpinned by front-loading exports, and business confidence fell sharply. It's crucial for policymakers to step up countercyclical policies. New types of infrastructure, high-tech manufacturing and consumption are likely to be the main policy focuses