Chinese manufacturing PMI buoyed by export orders in June

The pace of contraction in Chinese manufacturing slowed in June as the pace of growth in new orders picked up, a widely-followed survey of activity in the country revealed.

Nevertheless, analysts at Capital Economics said further policy easing from Beijing would still be necessary, although they remained optimistic that policymakers could still achieve their annual growth target [on the official figures] of “about 7%”.

The headline Markit/HSBC Chinese manufacturing sector purchasing managers´ index rose to a reading of 49.6 from 49.2 in the prior month.

Analysts had penciled in a reading of 49.5.

Sub-indices tracking both output and new orders registered strong prints, with the latter boosted by increased orders from overseas buyers.

Price pressures were also “comfortably” more evident than at the start of the year, the think-tank said.