China: Manufacturing activity picks up in June – HSBC

The official NBS manufacturing PMI rose to 51.7 in June from 51.2, defying market expectations of fall to 51.0, notes Kelvin Lam, Greater China Economist at HSBC. 

Key Quotes

“The latest reading is above the key level of 50 which signals an expansion in sector activity.  The composition shows that the expansion in domestic and export orders was very strong, which had led to a rise in production in June.   At 54.9, the non-manufacturing PMI also signaled a healthy expansion in activity.  The upshot is that underlying economic activity was stronger than the market had expected in June, supported by accommodative fiscal and monetary policies.  We reiterate our view of a modest but broader recovery in the coming quarters.”