China’s July Manufacturing PMI Down to 50.3 Amid a Positive Business Outlook

Source: IHS Markit

China General Manufacturing seasonally adjusted PMI moved from 51.3 in June to 50.3 in July, the slowest improvement in 15 months. 

CSI 300 is up +2.55%, USDCNY is down -0.01%.

• The employment index was slightly above 50 in July, signaling an expansion and an increase in the pending workload.
• The new export order index was marginally above 50 due to the high product prices. The new order index is the lowest in 15 months.
• The supply in the manufacturing sector increased while the demand reduced. Output index in July was the lowest in 16 months.  
• In July, there was insignificant ease in inflationary pressure. The input prices index was above 55 and has remained so in eight consecutive months.
• The business outlook among entrepreneurs is positive despite a lower than longer-term average future output expectation metric in July.