China Manufacturing PMI forecasted at 50.0 for June – Wells Fargo

Research Team at Wells Fargo, notes that the official Chinese manufacturing PMI has been close to the 50 demarcation point for more than four years in a directionless state of affairs for the sector.

Key Quotes

“The last time the manufacturing PMI was above 52 was on April 2012, which underscores the staying power of this new, stagnant state for the country’s manufacturing sector. Consensus expects that this directionless state of affairs remained essentially in place in June with a forecast of 50.0 for the index, nearly the same level recorded in May. On the other hand, the non-manufacturing index has remained above 50, clearly showing that the domestic economy is still delivering growth.

Meanwhile, the Caixin manufacturing PMI, which draws its information from exporting manufacturing firms, has remained below the 50 demarcation point since February 2015. Having said this, the index has improved somewhat to record a level of 49.2 in May.”