China manufacturing PMI slowed … MARKETWATCH
Gauge finds China manufacturing slowed in June
BEIJING–Growth in China’s manufacturing sector slowed in June, according to a private gauge, tallying with official data that showed a slight cooling of growth in manufacturing
activity on the back of simmering trade tension between the U.S. and China.
The Caixin China manufacturing purchasing managers’ index slipped to 51.0 in June, from 51.1 in May, Caixin Media Co. and research firm Markit said on Monday. The 50 level
separates an expansion in manufacturing activity from a contraction.
The subindex of production continued to rise in June with the rate of growth edging up to a four-month high, Caixin said. However, new export sales fell for the third month in a row and remained in contraction
territory amid the escalating trade dispute between China and the U.S., it added.
“Deteriorating exports and weak employment, along with companies’ destocking and poor capital turnover, put pressure on the manufacturing sector,” Zhengsheng Zhong, an economist at CEBM Group, said in a statement
accompanying Monday’s release.
China’s official manufacturing PMI dropped in June due to slower production and weakening demand, according to data released by the National Bureau of Statistics on Saturday.
The Caixin China Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives at more than 400 manufacturing companies.
Compared with the official gauge’s coverage of firms including large state-owned companies, the Caixin PMI tends to track small, private manufacturers more closely.