MNI DATA IMPACT:China Caixin June Mfg PMI Falls To Contraction

     BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index

(PMI) declined to 49.4 from 50.2 in May, falling into the contractionary zone

below 50 for the first time in four months. The decline is indicative of only a

marginal deterioration in the sector comprising small and medium sized

manufacturers, according to Caixin.

     New orders, which indicate future activity levels, slid below the breakeven

50, Caixin said in a statement. New export orders also fell back into

contractionary territory after the recovery in May, but were still better than

the levels seen from last April to last December, Caixin said. 

     The manufacturing industry's confidence fell to the lowest level since

April 2012 when the index was first compiled, as manufacturers worried about the

trade frictions between China and the U.S.

     Some manufacturers surveyed said that new product launches and expansion

plans in the following year may help to boost production.

     The Caixin figure was not in line with the trend of the official PMI,

reported by the National Bureau of Statistics on Sunday, which stayed flat at

49.4 in June from May.

     The Caixin PMI tracks small and medium sized manufacturers which are not

surveyed by the NBS.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: MAQDS$,M$A$$$,M$Q$$$]