China June Caixin Manufacturing PMI 49.4 (vs. 50.1 expected and 50.2 prior)

Terrible result, follows the poor results from official survey released earlier.

  • Output and new work intakes decline for first time since January
  • Renewed reduction in export sales
  • Goods producers cutback input purchasing and payroll numbers
Comments
  • the second lowest since June 2016
  • clear contraction in the manufacturing sector
  • subindex for new orders slid into contractionary territory, pointing to notably shrinking domestic demand
  • new export orders returned to contractionary territory, but was better than the levels seen from last April to last December. Front-loading by exporters was likely to support this gauge as the China-U.S. trade relationship was under great uncertainty. 
  • output subindex fell into contractionary territory
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