A tiny dip from the previous month and tiny below mid point estimates also
- expected 51.1
- prior 51.1 also
Markit summary (bolding mine):
- China's manufacturing sector expanded further in June, with companies registering sustained increases in output and new orders. That said, demand from overseas remained subdued, as new export sales fell for the third month running. At the same time, optimism towards the year ahead fell to a six-month low, while employment declined at the quickest pace since July 2017.
Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:
"The Caixin China General Manufacturing PMI stood at 51.0 in June, dropping slightly from a month earlier but remaining in expansion territory.
- The output index continued to rise, suggesting that manufacturing supply was relatively strong.
- The new order index dropped marginally, and the employment index dropped for the second consecutive month, indicating worsening layoffs.
- The index for new export orders fell to a low for the year so far and remained in contraction territory, pointing to a grim export situation amid escalating trade disputes between China and the U.S., which led to weak demand across the manufacturing sector.
"The indices for output charges and input prices both rose, with the latter jumping sharply, continuing to drive the output index upward and suggesting that the year-on-year growth of the producer price index probably continued to rise significantly in June.
- Corporate profits could have been squeezed due to the rapid rise in input prices, leading to a dip in the future output index.
- The two indices measuring stocks of finished goods and purchases both dropped, with the latter falling into contraction territory for the first time this year, reflecting that the manufacturing sector is stepping into a destocking phase amid weak demand.
- The suppliers' delivery times index remained in contraction territory, indicating delivery delays and poor capital turnover among manufacturing suppliers.
"Overall, the manufacturing PMI survey pointed to strengthening price pressures in June. Deteriorating exports and weak employment, along with companies' destocking and poor capital turnover, put pressure on the manufacturing sector."
---
Over the weekend, official survey PMIs:
