As a helpful preview on Wednesday we had the official China PMIs for June published:
- from China's National Bureau of Statistics
- Data is here: China official PMIs for June. Manufacturing 50.9 (vs. expected 50.8), Services 53.5 (expected 52.7)
At 0145 GMT today we'll get the privately surveyed Caixin/Markit Manufacturing PMI for June
- expected 51.8, prior 52.0
The official PMI mainly assesses large and state-owned firms. The Caixin manufacturing PMI has a larger representation of smaller (than SOEs) firms.
From the official survey we can glean some clues for today:
- the reading stayed above 50, which separates expansion from contraction
- new orders increased faster
- production remained resilient but did expand more slowly than in the previous month
- the sub-indexes of raw material prices and factory-gate prices both declined, still expanding though at 61.2 and 51.4, respectively
- manufacturers continued to reduce raw material inventories, cut employment and see longer delivery times
