China: Manufacturing PMI inches down in June
July 1, 2016
The Purchasing Managers’ Index (PMI) in June inched down to 50.0%, virtually in line with month’s 50.1% reading, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publishes the index. The print was in line with market expectations. The PMI is sitting on the 50% threshold that separates contraction from expansion in the manufacturing sector.
June’s reading reflected a deterioration in inventories, new orders and employment. The remaining components of the index gained ground compared to the previous month, with production reaching a one-year high. Input prices—a reliable leading indicator for consumer prices—suffered a sharp drop but remained above the 50% mark, suggesting that inflationary pressures are easing. New export orders fell below the 50% mark in June, signaling that global demand is still weak.
Author: Christopher Mc Innes, Economist