China: Manufacturing PMI inches down in July
July 31, 2017
The manufacturing Purchasing Managers’ Index (PMI) fell slightly from June’s 51.7% to 51.4% in July, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading was below the 51.6% that market analysts had expected. Nevertheless, the index rests comfortably above the 50% threshold that separates expansion from contraction in the manufacturing sector.
Julye’s reading reflected deteriorations in three of the five sub-components, with production and new orders experiencing sizeable declines. Purchases of raw materials fell mildly in the same month, while job prospects improved in July. Input prices—a reliable leading indicator for producer prices—jumped to a four-month high in July. New exports receded slightly from June’s multi-year high in June.