MNI DATA IMPACT: China July Manufacturing PMI Still Below 50

     BEIJING (MNI) - China's Purchasing Manager Index (PMI) edged up to 49.7 in

July from June's 49.4, data released by the National Bureau of Statistics on

Wednesday showed, beating the forecast of 49.6 by analysts polled by MNI. 

     The index remained in the contractionary zone below 50 for the third

straight month. 

     MNI highlights the following key points:

     - The PMI rebounded for the first time since April, mainly due to the

accelerated expansion of production and improved market demand. The production

sub-index and the new order sub-index were 52.1 and 49.8, up 0.8 and 0.2

percentage points from June, respectively. Both of these sub-indices saw a first

rebound in four months.

     - Although the new export order sub-index and the import sub-index were

still below the breakeven 50, both of them rebounded by 0.6 pp to 46.9 and 47.4,

respectively.

     - Despite the non-manufacturing PMI falling to 53.7 from 54.2 in June, it

is still expanding rapidly, the NBS said.

     --Activities in railway/air transportation and telecommunication sector

were above 59 for the third consecutive month, while construction registered

58.2, indicative of fast growth. Driven by summer holidays, activities in

accommodation, catering, sports and entertainment were growing rapidly, up 5.3,

3.5 and 7.6 pps from last month, according to the NBS. 

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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