China: Manufacturing PMI falls to five-month low in July
The manufacturing purchasing managers’ index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) fell from 51.5% in June to 51.2% in July. The print represented a five-month low and came in below market expectations of a dip to 51.3%. The index, however, remains above the 50% threshold that separates expansion from contraction in the manufacturing sector, where it has been for nearly two years.
July’s decline mainly reflected deteriorations in output and new orders growth. Moreover, supplier delivery times decreased slightly. On the upside, stocks of inventories for raw materials improved in July, while employment prospects increased marginally. New export orders steadied at low levels in July, reflecting the rise in trade tensions with the United States. While input prices declined in the same month, the sub-index remained firmly entrenched into positive territory due to high commodity prices.