The private survey PMI from China after yesterday's official survey results

Comes in a touch off estimates at 50.8

  • expected 50.9, prior 51.0

From the report (bolding mine) ….

Key Points

  • Slower increases in output and new orders
  • New export sales decline at quickest rate for over two years
  • Input costs rise solidly

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:

  • The Caixin China General Manufacturing PMI slipped to 50.8 in July from June. The reading has not been this low since November 2017.
  • The sub-indexes for output and new orders both fell, but remained in expansionary territory, while the employment subindex picked up despite remaining in contractionary territory. New export orders shrunk at the fastest pace since June 2016, indicating the export market continued to deteriorate.
  • The sub-indexes for output charges and input prices both dropped, but remained in expansionary territory, pointing to easing pressure on prices.
  • The sub-index for future output edged up, reflecting that goods producers were more optimistic that production would grow over the next 12 months.
  • The sub-index for stocks of finished items contracted at a steeper rate in July, while the sub-index for stocks of purchased items started expanding again - a positive sign that companies had reduced their stocks of finished products and replenished stocks of purchases. The sub-index for suppliers' delivery times rose, even though it failed to make it into expansionary territory, which might imply an improved capital turnover among manufacturers.
  • In general, the survey signaled a weakening manufacturing trend as a grim export market dragged on the sector's performance. The positive drivers were the increase in stocks of purchases and easing pressure on capital turnover.

Yesterday we got the official PMIs: