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According to official data, the Chinese manufacturing activity was contracted for the third straight month in June, which highlights the pressure on policy makers to promote domestic demand after a delicate trade trussian with the US.
The manufacturing purchasing managers index was at 49.7 in June, showing the National Bureau of Statistics figures on Monday, improved after reading 49.5 in May, but still below 50-marks that separates the expansion from contraction.
China’s manufacturing PMI – a monthly survey that offers an initial glimpse of economic activity – Became negative in April The Tariff with the US as a growing trade war brought the tariff to a high level as 145 percent.
Genuine Signed last week The levy between Washington and Beijing reduced those levy, but the world’s second largest economy is still facing an uncertain trade approach as it fights to improve consumer demand in the shadow of a property recession and deflation.
Consumer price growth in China has declined by four consecutive months. Dan Wang, director of China in the Eurasia Group, said, “There is a big reflection domestic demand.” “Deflation in China is deep, value war in areas is sharp”.
Export America fell the most in May in May Since the onset of Koronwirus epidemics, although overall exports, an important growth driver gave weakness in the property sector, growing.
PMI data showed some signs of improvement. The figure for new export orders was 47.7 in June, yet in the contraction area but above April, when they fell to the lowest level from the end of 2022.
Chinese economist Zichun Huang at Capital Economics said the export order “reflect a reversal in US demand after US-China trade”. The 90-day stop at dozens of other countries on the US tariff will also end on Wednesday next week.
Retail sales in China Jumped unexpectedly in MayAccording to NBS data, but anxiety on consumer demand continues to meet the expectations of excitement. Officials have repeatedly cut rates and demanded to promote confidence in a housing area, where house prices are still falling and there are signs of a lost ground in May.
“policy makers [are likely to wait] And monitor the development of [the] Trade War, “Zeewei Zhang said, the main economist of the pinpoint asset management, pointing to improvement in exports.” Deflation pressure is constant and the labor market is under stress, “he said.
Non-construction PMI was 50.5 in June, above 50.3 a month ago. The overall level was increased by the increase in construction PMI, which hit 52.8. The overall PMI beyond manufacturing and services was 50.7.
Huang said that the overall PMI was still below the first quarter in the second quarter.
“This conforms to a fourth-by-quarter of recession in GDP growth,” he said. “We suspect that the second half of the year will be much better, with weak exports and the chances of losing weight at speed are reduced”.
