Official PMI data shows dip in reading
An official report released 30th June 2021 of China’s factory activity is reported to have recorded a slight drop, as a shortage in computer chips and power problems slowed production.
China’s official manufacturing purchasing managers index (PMI) – fell to 50.9 from 51.0 in May, according to the National Bureau of Statistics.
The reading was higher than the 50.7 average forecast expected by analysts and remained above 50, which as we know separates expansion from contraction.
Index
The index measuring production declined to 51.9 in June, compared with 52.7 in May. The report suggests that production at some companies were slowed by recent coal, computer chip and power shortages.
Total new orders rose to 51.5 from May’s 51.3, but the new export orders fell lower to 48.1 from May’s 48.3, suggesting a weakening in external demand for Chinese goods.
Non manufacturing PMI
China’s non manufacturing PMI, which includes services and construction activity also fell sharply to 53.5 in June from 55.2 in May, recent data reported.