Rebound in China’s manufacturing PMI not broad-based, says ANZ

June 30, 2017

SINGAPORE - The surprising acceleration in China’s manufacturing PMI in June was mainly due to higher production and the new order sub-indices, which disguised an imbalanced recovery across sectors, according to ANZ Bank.

“The non-manufacturing PMI also moved up in June, thanks to vibrant activity in commercial services and construction sectors; financial deleveraging seems to have relatively little negative impact,” ANZ says, adding:

“Even with higher-than-expected PMIs in June, the moderation in Q2 GDP growth (our forecast is 6.7% y/y) is inevitable, in our view.”  www.live.anz.com (ATI).