China's June Markit “flash” manufacturing PMI improved,shows emerging signs of a near-term stabilisation

The headline PMI improved to 50.0. New orders increased to 50.3, with new export orders improving, though remaining below 50. 

Meanwhile, the employment sub-index decreased at a faster rate in June, reflecting muted expectations by corporates towards demand conditions both at home and abroad.

The decline in output prices accelerated, while the input price contraction moderated, which is expected to continue to weigh on inflation.

Recent data remain soft in general,showing emerging signals of near-term stabilisation. These include the improving official PMI, Markit PMI, a sustained pickup in property sales, and continued increase in electricity usage by the secondary/manufacturing sector. 

Although it is too early to confirm a trend, a continued improvement in leading indicators, including the PMIs, can be expected in the coming months, reflecting recent stepped up policy easing measures and sustained external demand.