China: Manufacturing PMI back into contraction territory - TDS
|Analysts at TD Securities note that China’s May manufacturing PMI fell back into contraction territory, falling to a lower than consensus 49.4 (market 49.9, TD 49.8).
Key Quotes
“Worsening in trade tensions with the US likely weighed further on manufacturing confidence and it appears that the bounce in activity in March is fading. The components gave an even more negative picture than the headline. New orders dropped to 49.8, the first below 50 reading following three months of expansion.”
“Worryingly for officials, the employment component fell to its lowest since February 2009. Output prices dropped to 49.0, pointing to profit pressures, while new export orders dropped further into contraction to 46.5. The data is likely to spur calls for more stimulus from the authorities, who will likely respond with more targeted measures in coming weeks.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.