China Manufacturing at 8 month low

China’s manufacturing sector expanded at its slowest pace in eight months, with the purchasing managers index (PMI) for the sector easing to 50.1 percent in July, down 0.1 percentage points from the previous month, according to official survey results published on Wednesday.

The PMI data released by the China Federation of Logistics and Purchasing (CFLP) and the National Bureau of Statistics suggested the manufacturing sector is still expanding even though the growth has slowed.

A reading of 50 percent demarcates expansion from contraction.

However, July’s PMI reading was below market expectations. Analysts had forecasted that the official data could inch up from one month earlier.

A flash HSBC PMI reading published last week rose to a five-month high of 49.5 percent in July due to increased pro-growth measures.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza