Edge and Odds

The enemy of knowledge is not ignorance, it’s the illusion of knowledge (Stephen Hawking)

It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so (Mark Twain)

Edge and Odds

Invest with smart knowledge and objective odds

CHINA FLASH MANUFACTURING PMI REMAINS WEAK

  • Flash China Manufacturing PMI™ at 49.6 in June (49.2 in May). Three-month high.
  • Flash China Manufacturing Output Index at 50.0 in June (49.3 in May). Two-month high.

The latest Flash China Manufacturing PMI survey provided a mixed bag of data in June. On the one hand, the sector shows signs of improvement as output stabilised amid a slight pick up in total new work, while purchasing activity also rose slightly over the month. On the other hand, manufacturers continued to cut their staff numbers, with the latest reduction the sharpest in over six years. This suggests that companies have relatively muted growth expectations as demand conditions both at home and abroad remain relatively subdued.

The data add to evidence that the sector has lost growth momentum in Q2 as a whole, and suggests that the authorities may step up their efforts to stimulate
growth and job creation in the second half of the year.

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JAPAN FLASH MANUFACTURING PMI SLIPS 1 TO 49.9

  • Flash Japan Manufacturing PMI™ at 49.9 (50.9 in May). Operating conditions deteriorate slightly in June.
  • Flash Japan Manufacturing Output Index at 50.5 (51.9 in May). Production growth slows to marginal pace.

Latest data signalled negligible deterioration in operating conditions at Japanese manufacturers. Production growth slowed to a fractional pace, while new orders contracted for the third time this year so far. Subsequently, employment growth was subdued, while buying activity declined.

Meanwhile, reports of a favourable exchange rate and an increase in foreign demand led to a further rise in new export orders in June. Moreover, the latest expansion was the second-fastest since January and quicker than the series average.

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