In short, the China PMI survey for June rose to 50.8 points, up from 49.4 in May and considerably higher than the 49.7 that economists had forecast. Compiled by Markit and published by HSBC, the report’s numbers are still preliminary, since it won’t be officially published before July 1, but with 85 to 90% of total responses counted, the final number is thought to be fairly accurate. The figure of 50.8 is also the first time it has reached over 50 in six months.
While China’s overall economy is still stagnant, manufacturing and product sourcing are still going strong and earned the moniker as “a pocket of resilience” thanks to worldwide demand, new orders, and increased production.
And this growth isn’t only limited to China manufacturing, it seems Japan has also taken an economic turn for the better according to Reuters. Their PMI jumped up to 52.0 from 49.6 in the same time period.
The article cited Beijing’s targeted stimulus measures and Japan’s improving labor market as key factors for increasing domestic demand in Asia’s dominant economies, even as Europe continues to struggle.
The Markit’s Composite Purchasing Managers’ Index for the 18 countries in Europe that use the euro based on surveys of thousands of companies did not fare as well, with the numbers falling from to 52.8 and down from May’s 53.5, which was well below the estimated 53.5 some experts had predicted. Only Germany seemed to perform well with Europe’s largest economy and a PMI that grew from 54.2 to 55.6. The United State is expected to have a slight jump in PMI.
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