China PMIs wilt

It’s not going well in China. The July manufacturing PMI is still in contraction:

In July 2019 , the China Manufacturing Purchasing Managers Index ( PMI ) was 49.7% , up 0.3 percentage points from the previous month , and the manufacturing boom level has rebounded.

In terms of enterprise scale, the PMI of large enterprises was 50.7% , which was 0.8 percentage points higher than that of the previous month and rose to the expansion range. The PMI of small and medium-sized enterprises was 48.7% and 48.2% , respectively, down 0.4 and 0.1 percentage points from the previous month . Click below.

From the classification index, among the five sub-indices that constitute the manufacturing PMI , the production index and supplier delivery time index are above the critical point, and the new order index, raw material inventory index and employee index are below the critical point.

The production index was 52.1% , up 0.8 percentage points from the previous month and above the critical point, indicating that the overall expansion of manufacturing production accelerated.

The new order index was 49.8% , up 0.2 percentage points from the previous month , below the critical point, indicating that the decline in orders for manufacturing products has narrowed.

New export orders continue to fall hard at 46.9:

The services PMI also faded with construction weaker as well though still expanding:

In terms of industries, the service industry business activity index was 52.9% , down 0.5 percentage points from the previous month . The service industry continued to grow and the growth rate slowed down. From the perspective of industry categories, the business activity index of railway transportation industry, air transportation industry, postal industry, telecommunications radio and television satellite transmission service, culture, sports and entertainment industry is located at a higher economic range of 56.0% and above, and the industry is more active; real estate The business activity index was below the critical point, and the total business volume declined. The construction industry business activity index was 58.2% , down 0.5 percentage points from the previous month , and the pace of construction industry expansion has slowed down.

The new order index was 50.4% , down 1.1 percentage points from the previous month and still above the critical point. In terms of industries, the service industry new order index was 49.7% , down 1.0 percentage point from the previous month ; the construction industry new order index was 54.7% , down 1.3 percentage points from the previous month .

Not great reports.

David Llewellyn-Smith
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