MNI DATA IMPACT: China MFG PMI in Contraction for 2nd Month

     BEIJING (MNI) - China's Purchasing Manager Index (PMI) last month was

unchanged from May at 49.4, below forecast 49.6, data released by the National

Bureau of Statistics on Sunday showed. MNI highlights the following takeaways:

     - The production sub-index declined for the third month, down 0.4 pp from

May to 51.3 in June. New orders fell further to 49.6 from May's 49.8. New export

orders fell to 46.3 from 46.5 in May, suggesting weakening external demand.

     - Non-manufacturing PMI lost 0.1 pp to 54.2 in June. It was still above 54

for the sixth month, well within expansion zone. 

     --Activities in railway and air transportation, telecommunication, banking

and insurance sector were above 59, while construction registered 58.7,

indicative of fast growth. Road transport, accommodation and catering all

registered contraction.

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

[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$]