(National Bureau of Statistics of China) China recorded a manufacturing PMI of 50.9 in June, down from 51.0 in May. The PMI was still higher than the expected 50.8.
The slowdowns in China’s manufacturing PMI were connected to the broader supply chain disruptions, including shortages of semiconductors.
The slowdowns in factory activity eradicated fears of Beijing’s policy tightening that pushed Chinese stocks higher.
The production sub-index fell to a four-month low of 51.9, from 52.7 in May.
New export orders declined for the second month and at a faster rate in June due to the resurgent Covid variants across the globe.
Raw material costs sub-index fell to 61.2, from 72.8 in May on an intensified government crackdown on prices.
The construction index was steady at 60.1 in June amid clampdowns on the property market by the state.
Manufacturing PMI is expected to rebound to 51.2 in July due to the release of pent-up demand.
CSI 300 is up +0.65%, USDCNY is down -0.11%.
