MNI 5 THINGS: China July PMI Extends Decline; Service Weakens

     BEIJING (MNI) - Here are five key findings in China's official Purchasing

Managers Index (PMI):

     - PMI fell for a second month to 51.2 in July from 51.5 in June, below

MNI's forecast of 51.3. The manufacturing gauge had for almost two years

remained above 50, which divides expansion and contraction. 

     - The production index was 53.0, down from 53.6 m/m, due to the frequent

adverse weather and equipment overhaul, Zhao Qinghe, senior statistician at the

National Bureau of Statistics, said in a statement.

     - New orders index dropped by 0.9 percentage point from June to 52.3, the

lowest in five months. New exports order index was unchanged from last month at

a contraction score of 49.8, likely a result of the trade conflicts with the

U.S.

     - Imports index fell to a contraction of 49.6 in July from 50.0 in the

previous month. It was the first time the index dropped into the contraction

territory in five months. The shrinking of the index reflected the volatility of

the CNY-USD exchange rate in July.

     - Services PMI declined to a 1-year low, at 54.0 in July from 55.0 in June.

At above 54.0, it showed services are holding up against slowing growth and

trade. The expectations index fell to 60.2 from 60.8 last month, the third month

that the reading fell. 

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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