Official PMIs come from the China National Bureau of Statistics and the China Federation of Logistics and Purchasing.
Manufacturing 49.0, its lowest in 3 months and back into contraction
- expected 50.3 and prior 50.2
- China’s NBS attributes the result, according to statements reported in State media (Xinhua), to traditional production off-peak period, insufficient market demand, and the weakened performances of energy-intensive industries.
- expected 53.9, prior 54.7
The 'Composite’ of the two hit 52.5, down from June’s54.1.
This is not the first time recently we’ve heard of „insufficient demand” as a reason for the poor performance of the country’s economic indicators. Ongoing outbreaks and associated restrictions have played, and continue to play, a role in this.
On a brighter note the non-manufacturing PMI indicator (this shows the performance of services and construction sectors), while down from June, recorded a solid expansion.
At the margin these numbers are a negative input to China-proxy trades such as AUD.