China: Manufacturing PMI increases slightly 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) rose from 50.9% in June to 51.1% in July. The print was above the 50.7% expected by market analysts. As a result, the index remained above the 50.0% threshold that separates expansion from contraction in the manufacturing sector.
July’s increase was the result of gains in four out of the five sub-components, with new orders and inventories leading the pack. The all-important output category posted a small gain, while the supplier delivery time index deteriorated slightly. Despite remaining below the 50% threshold, export orders increased markedly in July, reflecting the easing of the global lockdown. Meanwhile, input prices—a reliable leading indicator for producer inflation—jumped to a nearly two-year high.