China’s manufacturing activity remains sluggish in June as higher US tariffs kick in
- Purchasing managers’ index unchanged from May at 49.5, suggesting further contraction in the sector
- Non-manufacturing PMI shows continued expansion but at a slower rate
China’s manufacturing industry remained weak in June, with the official purchasing managers’ index suggesting factory owners are still downbeat about their prospects as the pressures of the trade war continue to mount.
Published by the National Bureau of Statistics on Sunday, the purchasing managers’ index (PMI) for the month, was unchanged from May at 49.4, marginally below the mean forecast of 49.5 in a poll of economists by Bloomberg.
The PMI is a gauge of sentiment among factory operators, with 50 points being the demarcation between expansion and contraction in activity. As in May, the June figure was the lowest since February’s 49.2, after signs of expansion in March and April.
Regardless, the Chinese economy is on a slowing trajectory and the impact of the existing 25 per cent tariffs on US$250 billion of Chinese goods have been damaging the manufacturing and exporting sectors for months.