Rolling coverage of the latest economic and financial news
8.09am BST
Economists and traders are cheered by the news that China’s factories posted growth this month, despite the ongoing pandemic.
Iris Pang of ING says today’s manufacturing and non-manufacturing PMIs both send a positive signal for the economy. Can it be sustained?
Demand for materials and products for the development of advanced technology, the real estate market and infrastructure projects support growing manufacturing activity.
The foreign orders PMI at 42.6 in June confirms that external demand remains weak. We believe that the ongoing Covid-19 situation in the US and Europe will keep the pressure on export orders in the coming months. External demand weakness is putting pressure on some manufacturers, especially small factories, of which the sub-index PMI fell to 48.9 in June from 50.8 a month ago. This confirms our view that small manufacturers continue to struggle to get export orders.
The better-than-expected China PMI lends further weight to the argument that a global cyclical recovery is well underway.
Encouragingly, there was a broad improvement in the details for the manufacturing PMI with output, new orders and new export orders all rising from last month.
China factory outlook is brighter in June as recovery continues: PMI index rose to 50.9 from 50.6 a month earlier. The non-manufacturing PMI rose to 54.4; readings above 50 indicate improving conditions from prev. month, chart @BloombergQuint https://t.co/Q0aCzWMslz pic.twitter.com/1uiB0JmFSS
7.47am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
China PMI comes in at 50.9 in June.
That’s a positive reading, but only just.
Based on the PMI’s, China’s recovery is steady but unspectacular. pic.twitter.com/tGU4t8PQfV
“The latest survey data suggest that economic growth accelerated in June thanks to a faster recovery in manufacturing and services, alongside continued strength in construction activity,
The recovery should remain robust in the coming months as strong infrastructure spending offsets external weakness.”
ICYMI: There were further modest signs of recovery in China this month, with the official NBS non-manufacturing PMI rising to a 7-month high of 54.4 in June, while the manufacturing PMI edged higher to 50.9 pic.twitter.com/MZoBNNUd3Q
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Continue reading…Rolling coverage of the latest economic and financial newsCoronavirus – latest updatesSee all our coronavirus coverage 8.09am BSTEconomists and traders are cheered by the news that China’s factories posted growth this month, despite the ongoing pandemic.Iris Pang of ING says today’s manufacturing and non-manufacturing PMIs both send a positive signal for the economy. Can it be sustained? Demand for materials and products for the development of advanced technology, the real estate market and infrastructure projects support growing manufacturing activity. The foreign orders PMI at 42.6 in June confirms that external demand remains weak. We believe that the ongoing Covid-19 situation in the US and Europe will keep the pressure on export orders in the coming months. External demand weakness is putting pressure on some manufacturers, especially small factories, of which the sub-index PMI fell to 48.9 in June from 50.8 a month ago. This confirms our view that small manufacturers continue to struggle to get export orders. The better-than-expected China PMI lends further weight to the argument that a global cyclical recovery is well underway.Encouragingly, there was a broad improvement in the details for the manufacturing PMI with output, new orders and new export orders all rising from last month. China factory outlook is brighter in June as recovery continues: PMI index rose to 50.9 from 50.6 a month earlier. The non-manufacturing PMI rose to 54.4; readings above 50 indicate improving conditions from prev. month, chart @BloombergQuint https://t.co/Q0aCzWMslz pic.twitter.com/1uiB0JmFSS 7.47am BSTGood morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.China PMI comes in at 50.9 in June.That’s a positive reading, but only just.Based on the PMI’s, China’s recovery is steady but unspectacular. pic.twitter.com/tGU4t8PQfV“The latest survey data suggest that economic growth accelerated in June thanks to a faster recovery in manufacturing and services, alongside continued strength in construction activity,The recovery should remain robust in the coming months as strong infrastructure spending offsets external weakness.” ICYMI: There were further modest signs of recovery in China this month, with the official NBS non-manufacturing PMI rising to a 7-month high of 54.4 in June, while the manufacturing PMI edged higher to 50.9 pic.twitter.com/MZoBNNUd3QEuropean Opening Calls:#FTSE 6235 +0.15%#DAX 12271 +0.32%#CAC 4959 +0.26%#AEX 562 +0.38%#MIB 19477 +0.15%#IBEX 7288 +0.13%#OMX 1676 +0.27%#STOXX 3238 +0.19%#IGOpeningCall Continue reading…