China PMI Edges Higher But Second Quarter Slowdown Still Likely

China's manufacturing PMI ticked up to 50.3 in June, beating expectations, though analysts maintain that a second-quarter slowdown is likely due to tepid domestic demand.

Key Takeaways

• 1.China's manufacturing PMI improved to 50.3 in June from 50.0 in May, slightly beating market expectations.
• 2.Despite the PMI uptick, a second-quarter economic slowdown to 4.6% year-on-year is anticipated.
• 3.July's Politburo meeting is the primary focus for potential new stimulus signals to address sluggish domestic demand.

Table of Contents

• China PMI edges higher, but second-quarter slowdown still likely
• China's manufacturing PMI rebounds in June
• Is China's reflation momentum going to be cut short?
• Non-manufacturing PMI edges up in June to stay in expansion territory
• Markets are increasingly watching for July's Politburo meeting for further stimulus cues

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