China June official PMI hits 7-month low – Reuters

China June official PMI hits 7-month low – Reuters


China's factory downturn worsened in June as a key activity index hit a seven-month low, data expected to raise expectations the central bank may seek more policy easing to revive the world's second-largest economy.
The official Chinese purchasing managers' index (PMI) fell to 50.2 in June after seasonal adjustments, the National Bureau of Statistics said on Sunday, above forecasts for 49.8, but down from May's 50.4.
That was the worse reading since November last year, and a sharp fall in export orders and shrinking new orders suggested a recovery is not in sight. This would fuel bets that Beijing could further relax monetary policy as soon as this month, an analyst said.
"New orders and input prices are still falling, which show there are still many factors affecting production. A recovery in industrial output would take time," Zhang Liqun, a government researcher, said in a statement accompanying the PMI data