This morning the closely-watched China “flash” manufacturing PMI gauge for July will be released.
Here’s the state of play.
- Firstly, the most important news. No longer is the survey sponsored by HSBC. Caixin, a Beijing-based media group, now has naming rights.
- The Markit survey is based off the responses of over 420 small-to-medium sized manufacturing firms based in China.
- It is a composite index based on five individual subindices: new orders, output, employment, suppliers’ delivery times and stock of items purchased.
- A reading above 50 indicates an expansion in activity with a reading below 50 a contraction. 50 indicates activity is neither expanding nor contracting.
- In June the index came in at 49.4 as a sharp contraction in employment offsetting modest improvements in most other areas.
- Having contracted for the past four months, markets are expecting that trend to continue with the index expected to rise to 49.7 in July.
- While that would mark the fifth consecutive monthly contraction, it would also be the the third month that the speed of contraction has slowed.
Will the change in sponsorship see an upside surprise, or will activity across the sector remain weak? We’ll find out the answer at 11.45am AEST.
Business Insider will have full coverage as soon as the data drops.
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