"Chinese factories poised for 'cruel summer' as PMI surveys raise outlook risks"

 From Reuters, July 31/Aug. 1:

Summary

• Caixin/S&P Global July manufacturing PMI at 49.8 vs 51.8 in June
• Caixin/S&P Global PMI misses analysts' expectations of 51.5
• Official manufacturing PMI on Wednesday also showed decline

BEIJING, Aug 1 (Reuters) - China's sluggish manufacturing sector is poised for a "cruel summer" with two sentiment surveys this week pointing to a new level of gloom among factory owners struggling with poor demand, signalling risks for economic growth in the second half of 2024.

 

A private-sector survey of purchasing managers from 650 private and state-owned manufacturers published on Thursday found that operating conditions in the sector deteriorated for the first time in nine months as new orders tumbled.

 

The Caixin/S&P Global manufacturing Purchasing Managers' Index (PMI) dropped to 49.8 in July - below the 50-mark separating growth from contraction - from 51.8 the previous month. That was the lowest reading since October last year and missed analysts' forecasts of 51.5.

 

The unexpectedly downbeat survey, which mostly tracks export-oriented firms, came on the heels of an official PMI survey covering bigger companies that also showed reduced order flows and weak prices....

....MUCH MORE

 

The Shanghai - Shenzhen CSI 300 index is trading down around a half-percent after a big jump yesterday.