China Manufacturing Teeters Close to Contraction - Bloomberg

China Manufacturing Teeters Close to Contraction - Bloomberg

The Purchasing Managers’ Index unexpectedly fell to 50.1 in July from 50.2 in June. The reading today from the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing was the weakest in eight months and compares with the 50.5 median estimate in a Bloomberg News survey. A reading above 50 indicates expansion.
Today’s data increase odds China will introduce more measures to stem a deceleration in the world’s second-biggest economy that may extend into a seventh quarter. Leaders of the ruling Communist Party pledged yesterday to keep adjusting policies to ensure stable growth, describing the external environment as posing “difficulties and challenges” as the jobless rate in the euro area reached the highest on record.

This is the official PMI surveying large state-back companies. The other PMI surveying smaller export-oriented companies will probably come in lower.