China: Manufacturing PMI inches up in June
June 30, 2020
The manufacturing Purchasing Managers’ Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) rose from 50.6% in May to 50.9% in June. The print was above the 50.5% expected by market analysts. As a result, the index remained above the 50.0% threshold that separates expansion from contraction in the manufacturing sector.
June’s increase was the result of gains in three out of the five sub-components, with production and new orders leading the pack. On the downside, job prospects deteriorated for the third consecutive month. Despite recovering somewhat, export orders remained well below the 50% threshold, suggesting that global demand remains weak. Meanwhile, input prices—a reliable leading indicator for producer inflation—jumped to a nearly two-year high.