China services PMI snaps back

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The China HSBC PMI is out and jumped back in June:

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HSBC China Composite PMI™ data (which covers both manufacturing and services) signalled a second successive monthly increase of Chinese business activity in June. Moreover, the rate of expansion accelerated to the strongest in 15 months, as signalled by the HSBC Composite Output Index posting at 52.4 in June, up from 50.2 in May.

June data indicated that a solid rise in activity at service providers and renewed output growth at manufacturers supported the faster expansion of output at the composite level. Furthermore, manufacturing output increased at the strongest pace since last November, while services activity growth was the quickest since March 2013. The latter was signalled by the HSBC China Services Business Activity Index posting at 53.1 in June (up from 50.7 in May).Reports from panellists suggested that activity rose in line with stronger inflows of new business.

More stability for China. And markets like it with rebar futures up 0.5% and Dalian iron ore futures up three quarters of percent. The miners are going bananas on this and the sliding dollar.

Full report here.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.