| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Index | 49.0 | 49.0 to 49.6 | 50.4 | 48.3 |
Highlights
The S&P Global China manufacturing PMI showed solid improvement in conditions in the sector in June, with the headline index falling to 50.4 from 48.3 in May. Official PMI survey published earlier in the week showed contraction in the sector in June.
Respondents to the S&P PMI survey reported output rose modestly in June but at the fastest pace since November, with new orders increasingly marginally but new export orders falling for a third consecutive month. Respondents again cited global trade tensions as a significant factor weighing on external demand. Payrolls were also reported to have been cut in June while the survey's measure of business confidence shows that respondents expect output to rise over the next twelve months by less than they did last month. The survey also shows input costs fell for the fourth month in a row and that firms cut selling prices for the seventh consecutive month.
The RPI and RPI-P rose from minus 7 and minus 10 respectively to zero, indicating that data are coming in right on market expectations.
Respondents to the S&P PMI survey reported output rose modestly in June but at the fastest pace since November, with new orders increasingly marginally but new export orders falling for a third consecutive month. Respondents again cited global trade tensions as a significant factor weighing on external demand. Payrolls were also reported to have been cut in June while the survey's measure of business confidence shows that respondents expect output to rise over the next twelve months by less than they did last month. The survey also shows input costs fell for the fourth month in a row and that firms cut selling prices for the seventh consecutive month.
The RPI and RPI-P rose from minus 7 and minus 10 respectively to zero, indicating that data are coming in right on market expectations.
Market Consensus Before Announcement
The Caixin manufacturing index is expected up slightly at 49.0 from 48.3 in May.
Definition
The S&P Manufacturing Purchasing Managers' Index (PMI) is based on monthly a questionnaire that surveys of over 500 companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The S&P PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
The S&P PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
