| Consensus | Consensus Range | Actual | Previous | |
| Index | 51.9 | 51.4 to 52.0 | 51.7 | 51.8 |
Highlights
The S&P Global China manufacturing PMI showed conditions were little changed in the sector in June, with the headline index falling slightly to 51.7 from 51.8 in May. This survey continues to show stronger conditions in the sector than official PMI survey data and has shown expansion in the sector for seven consecutive months
Respondents to the S&P PMI survey reported slower growth in output but stronger growth in new orders in June, with new export orders reported to have fallen slightly fort the second month in a row. The survey also shows the first increase in payrolls in three months but its measure of business confidence shows firms are less optimistic about output growth over the next twelve months. Growth in input costs was reported to have eased but selling prices were reported to have been increased at a a faster pace.
Market Consensus Before Announcement
The manufacturing PMI is seen almost unchanged at 51.9 versus 51.8 in May, indicating very slow expansion in business activity, a better reading than the official Chinese PMI which is expected to show no growth and no contraction.
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.