|China PMI, input prices, export orders (static)|
When breaking out the PMI data, China's input prices crashed to 41.2 in June from 44.8 in May, and export orders fell to 47.5 in June from 50.4 in May. If you've been watching the HSBC China Manufacturing PMI chart, this weakness was expected. I created an interactive monthly chart comparing China's overall PMI, input prices, and export orders from October 2011 to June 2012 using Thomson Reuters data (via xe.com). Since the PMI showed that China's manufacturing growth was still trending down, and aggressive input price contraction increased deflation risk, traders will be watching to see if China's central bank lowers interest rates and the bank RRR (reserve requirement ratio) again in the third quarter to stimulate the economy.
The data table also includes output, new orders, backlogs of orders, stocks of goods, quantity of purchases, stocks of purchases, employment, and delivery times. To read economist thoughts on the PMI and possibility of easing by the PBOC, read articles at Bloomberg, Dow Jones Newswires, Reuters, Xinhuanet, and AFP.
*You can view the 5-year chart of the China Manufacturing PMI at Bloomberg.com (CPMINDX).