In June, Caixin China Manufacturing PMI Recorded A 49.4 Return To Contraction Zone.

In July 1st, Caixin China's Manufacturing Purchasing Managers Index (PMI) released in June was 49.4, lower than 0.8 percentage points in May. For the first time in four months, it fell below the line of prosperity and demarcation, indicating that China's manufacturing boom declined significantly. 　　

This trend is not consistent with the PMI of the National Bureau of statistics. In June, the National Bureau of statistics released the manufacturing industry PMI, which recorded 49.4 of June manufacturing PMI, unchanged from last month. 　　

Under the background of no easing of Sino US trade frictions, total new orders and new export orders have declined. Among them, the total volume of new orders has contracted for the second time this year, but the range is still moderate, while the new export orders which just resumed growth in May have come down again. 　　

In June, China's manufacturing output also ended four consecutive months of growth. Categorical data show that consumption is the only category of output growth recorded in June. 　　

In June, the scale of employment in manufacturing industry continued to shrink, which was similar to that of the previous two months. It is reflected that after voluntary turnover, manufacturers did not fill the vacancy. This exacerbated the pressure of manufacturers' capacity, and the backlog workload continued to rise in June, but the overall backlog was still small, roughly the same as in the previous two months. 　　

As the total volume of new orders declined and production declined, the volume of purchases decreased slightly in June, which failed to extend the trend of last month's expansion, while purchasing inventory increased. Due to the decline in production, new stock orders are being delivered and manufacturers will increase the use of existing stocks, resulting in further decline in finished goods inventories. 　　

In June, the average input cost of manufacturing industry rose by seven months, and the factory price of manufacturing products also rose slightly, breaking the level of May. 　　

Because Sino US trade friction has significantly affected corporate confidence, manufacturers' optimism continues to decline, the lowest since April 2012. Some manufacturers expect that new products and expansion plans will help boost production in the coming year, while others are worried about Sino US trade disputes. 　　

Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that in June, China's manufacturing boom declined significantly, the economy was further pressurized, and domestic demand contracted significantly. External demand was still supported by the "grab export" factor, and the confidence of entrepreneurs declined rapidly. The further force of counter cyclical policy is very necessary. New infrastructure, high-tech manufacturing and consumption may become the main starting point for policy.