China’s PMIs auger slower growth

Monday, 2 July 2018

Via Capital Economics:

• The latest PMI readings suggest that the economy lost some momentum last month. With credit growth still cooling and US tariffs imminent, we expect further weakness ahead.

• After holding steady at 51.1 in May, the Caixin manufacturing PMI edged down to 51.0 in June. The index is generally a better guide to cyclical trends than its official counterpart, which was published on Saturday. But for what it’s worth, the latter also declined last month, from 51.9 to 51.5. (See Chart 1.)

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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.