This is the private survey of manufacturing PMI from China
Comes in at 51.1 for July, way ahead of expectations and its June result at 50.4.
- Strongest in 4 months
In brief from Markit's report:
- Operating conditions faced by Chinese manufacturers improved at a slightly quicker pace in July.
- Companies indicated that both output and new orders rose at the fastest rates for five months
- Solid upturn in new export sales
- Inflationary pressures ticked up, with both input prices and output charges rising at faster rates than in June
- Companies relatively cautious stance towards employment, with staff numbers falling again in July
- This coincided with a subdued level of confidence towards the business outlook, with optimism towards the year ahead dipping to an 11-month low
More:
- Rate of new order growth picked up to a five-month high in July
- Panellists widely commented on an improvement in market conditions and strong foreign demand
- New export sales increased at the second-fastest rate since September 2014
- Rate of job shedding was the quickest seen for ten months
- Backlogs of work continued to increase at a modest pace
Commenting, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:
- The sub-indices of output and new orders both rebounded further from May's recent lows. The sub-indices of input costs and output prices both continued to rise to hit four-month highs. Although the sub-index measuring stocks of finished goods remained in contraction territory and slid further, the sub-index showing quantity of purchases indicated the strongest rise in buying activity for five months, pointing to moderate growth in manufacturing production going forward. Operating conditions in the manufacturing sector improved further in July, suggesting the economy's growth momentum will be sustained. That said, it's unlikely that financial regulatory tightening will be relaxed.
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Yesterday we got the official PMIs:
- China official manufacturing PMI (July): 51.4 (expected 51.5)
- China official Services PMI (July): 54.5 (prior 54.9)
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AUD popped 0.8040, continuing its climb on the session
