China's manufacturing, and services, PMIs are expected to have declined in June:
Manufacturing expected 50.8, prior 51.0
Non-manufacturing expected 52.7, prior 55.2
China saw a resurgent wave of COVID-19 infections in the major industrial province of Guangdong. Morgan Stanley preview comments:
- key drag would be COVID disruption on Shenzhen ports, accounting for about 7% of national exports
- has led to slower container throughput growth
- could weigh down national exports by 3-4%
- and thus drag the pace of production in mid- to downstream sectors
- construction activity likely slowed amid higher raw material prices
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The official PMI mainly assesses large and state-owned firms.
Later this week (Thursday) we'll get the private Caixin manufacturing PMI. This has a larger representation of smaller (that SOEs) firms:
- expected 51.8
- prior 52
