Official purchasing manager index data for manufacturing and non manufacturing is due on Tuesday at 0130 GMT
Manufacturing PMI
- expected 51.3
- prior 51.5
Non-manufacturing
- expected 54.9
- prior 55.0
Both, as you see, are expected to be slightly under the previous month's results. Supporting both manufacturing and services industries are still solid profit margins driven by strong commodities prices & authorities efforts to trim excess production capacity. On the negative side: slightly softer domestic demand/investment & as a worsening trade dispute with the US.
Preview (via Nomura:
- We expect the official manufacturing PMI to fall to 51.2 in July from 51.5 in June, as high-frequency data (such as of blast furnace operating ratio and crude steel production) points to weakening growth momentum.
- Seasonality could also be a factor, as, over the past three years, the official PMI has slowed by an average of 0.2pp from June to July.
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The Caixin (private survey) PMIs will follow later in the week
- 1 August at 0145GMT for the Manufacturing
- and 3 August 0145 GMT for the non-manufacturing