China manufacturing and non-manufacturing PMI for July

PMI manufacturing is below the 50 level for the third straight month
  • Manufacturing PMI 49.7 versus 49.6 estimate. Last month 49.4
  • Non-manufacturing PMI 53.7 vs 54.0 estimate. Last month 54.2
  • Composite PMI index 53.1 versus 53.0 last month

For manufacturing:

  • new orders 49.8 versus 49.6 last month
  • employment 47.1 versus 46.9 last month
  • new export orders 46.9 versus 46.3 last month
  • import orders 47.4 versus 46.8 last month
  • input prices 50.7 versus 49.0 last month
  • output 52.1 versus 51.3 last month
  • output prices 46.9 versus 45.4 last month
  • inventories of finished goods 47.0 versus 48.1 last month
  • backlog of work 44.7 versus 44.5 last month

For non-manufacturing:

  • new orders 50.4 versus 51.5 last month
  • employment 48.7 versus 40.2 last month
  • input prices 52.9 versus 51.5 last month
  • selling prices 50.6 versus 49.7 last month
  • new export orders 48.4 versus 48.5 last month
  • backlog of work 44.4 versus 44.4 last month
  • inventories 45.5 versus 46.0 last month
  • supplier delivery times 52.0 versus 51.4 last month

A reading above 50 signals expansion. The manufacturing index has now been below 50 for the third straight month and 6 of the last 8 months. The trade war with the US is weighing on that sector of the economy.

The NZDUSD and AUDUSD has moved lower with the NZDUSD moving to the lowest level since July 10. Also hurting the NZDUSD is the business confidence which moved to -44.3 from -38.1.