China's Manufacturing Sector Growth Weakens In June
01 July 2021 - 12:06PM
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China's manufacturing sector growth softened in June as output
and new orders growth slowed due to an uptick in COVID-19 cases and
supply chain difficulties, data from IHS Markit showed on
Thursday.
The Caixin manufacturing Purchasing Managers' Index fell to a
3-month low of 51.3 in June from 52.0 in May. The reading was below
economists' forecast of 51.8. However, a score above 50.0 indicates
expansion in the sector.
Production grew at the slowest pace since March and total new
business grew at a slower rate in June. New export work was broadly
stagnant in June.
Data signaled a slower increase in purchasing activity due to
the lack of stock at vendors and logistical delays related to the
pandemic.
On the employment front, the survey showed that manufacturers
added to their workforce numbers again in June. Though marginal,
the rate of job creation was the second strongest since January
2013.
At the same time, backlogs of work rose for the fourth month in
a row, though the rate of accumulation was only slight.
Inflationary pressures eased in June. The rate of input price
inflation softened to a seven-month low. At the same time, prices
charged by manufacturers rose at the slowest rate since
February.
Business confidence towards the year-ahead outlook for output
remained strong in June. But the degree of optimism was unchanged
from May's four-month low.
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