China HSBC Flash PMI Rises to 49.6

Manufacturing in China remained stuck in a rut in June, with HSBC flash PMI data showing some improvement from May, but still indicating contraction for a fourth straight month.

The HSBC flash PMI for June rose to 49.6, above the 49.4 forecast in a Reuters poll, but still below the key 50 level which separates contraction and expansion. The official PMI came in at 50.2 last month.  The data were a mixed bag, Annabel Fiddes, economist at Markit, said in a statement with the data.

“On the one hand, the sector shows signs of improvement as output stabilized amid a slight pick up in total new work,” Fiddes said. “On the other hand, manufacturers continued to cut their staff numbers, with the latest reduction the sharpest in over six years.”

CNBC

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