HSBC’s report on China’s Manufacturing PMI is out, here the report highlights:
• Flash China Manufacturing PMI™ at 49.6 in June (49.2 in May). Three-month high.
• Flash China Manufacturing Output Index at 50.0 in June (49.3 in May). Two-month high.
Commenting on the Flash China Manufacturing PMI survey, Annabel Fiddes, Economist at Markit said: “The latest Flash China Manufacturing PMI survey provided a mixed bag of data in June. On the one hand, the sector shows signs of improvement as output stabilised amid a slight pick up in total new work, while purchasing activity also rose slightly over the month. On the other hand, manufacturers continued to cut their staff numbers, with the latest reduction the sharpest in over six years. This suggests that companies have relatively muted growth expectations as demand conditions both at home and abroad remain relatively subdued. “The data add to evidence that the sector has lost growth momentum in Q2 as a whole, and suggests that the authorities may step up their efforts to stimulate growth and job creation in the second half of the year.”