China's manufacturing activity slows in June
By Michele Maatouk
Date: Monday 03 Jul 2023
(Sharecast News) - Activity in China's manufacturing sector slowed in June, according to data released on Monday.
The Caixin/S&P Global manufacturing purchasing managers' index fell to 50.5 from 50.9 in May, although this was above consensus expectations for a reading of 50.0.
A reading above 50.0 signals expansion, while a reading below indicates contraction.
Wang Zhe, senior economist at Caixin Insight Group, said: "A slew of recent economic data suggests that China's recovery has yet to find a stable footing, as prominent issues including a lack of internal growth drivers, weak demand and dimming prospects remain.
"Problems reflected in June's Caixin China manufacturing PMI, ranging from an increasingly dire job market to rising deflationary pressure and waning optimism, also point to the same conclusion."
Last Friday, data from China's National Bureau of Statistics showed the manufacturing PMI ticked up to 49.0 in June from 48.8 in May.
Pantheon Macroeconomics said: "The official index has been more sensitive to recent volatility, such as the disruption during the Covid exit waves, and has a broader geographical coverage, by contrast to the Caixin index's heavier weighting of light industry, exports and the private sector.
"In short, the gloomier reading in the official index is probably closer to reality."
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