Official data: China’s manufacturing activity remained in contraction zone in June
The housing market in China has been faltering for months and the latest data showed home sales tumbled in June, signalling the property market is far from stabilizing.
China’s official manufacturing PMI for June according to the National Bureau of Statistics (NBS) continued to underperform for the third month in a row, magnifying the need for more policy stimulus from the government to counter the poor demand both locally and abroad. The official index has marginally gained from 48.8 in May to 49 in June but remained below the 50 mark, which indicates a contraction.
The official non-manufacturing index, which read activities in the service and construction sectors fell to 53.2 in June from 54.5 in May. The housing market in China has been faltering for months and the latest data showed home sales tumbled in June, signalling the property market is far from stabilizing.
The new orders index at 48.6%, up by 0.3% indicates that demand in the manufacturing activity is gaining traction albeit at a laboured pace.