China’s Official PMI Drops To 50 In July

China’s official manufacturing purchasing managers index (PMI), the bellwether of large industrial firms, dropped to 50 in July from 50.2 in the prior month.

In the meantime, Caixin China flash PMI fell to a 15-months low of 48.2 in July, down from 49.6 in June.

"The decline of the official PMI suggests that the manufacturing sector remained weak despite the better-than-expected second quarter GDP," says a research report by ANZ.

The bank reiterates its forecast that the People’s Bank of China will cut the policy interest rate by another 25 basis points in the third quarter, and conduct two bank reserve requirement ratio (RRR) cuts of 50 basis points by the end of the year.

China Expert Network
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