China: Manufacturing PMI improves in June
June 30, 2017
The manufacturing Purchasing Managers’ Index (PMI) rose from May’s 51.2% to 51.7% in June, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading was above the 51.0% that market analysts had expected. Therefore, the index rests comfortably above the 50% threshold that separates expansion from contraction in the manufacturing sector.
June’s reading reflected improvements in three of the five sub-components, with production and new orders experiencing sizeable gains. Purchases of raw materials increased mildly in the same month. Conversely, job prospects and the supply delivery times category deteriorated in June. Input prices—a reliable leading indicator for producer prices—jumped back into positive territory in June. New exports jumped to a multi-year high in June, highlighting the strength of global demand.