The trade war between Beijing and Washington continues to affect China’s economy. However, the sector remains above 50 points, which separates growth from contraction. Foreign orders are falling and employment is at its lowest since August 2017.
Beijing (AsiaNews/Agencies) – Growth in China’s manufacturing sector cooled in June due to the escalating trade dispute with the United States.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) declined to 51.0 in June but remained above the 50-point mark that separates growth from contraction.
The manufacturing index continued to be positive but slipped from 51.8 in May to 51.7 in June, whilst the subindex for output rose above 52.
Conversely, foreign orders fell below 50 points to 48.8 for the third consecutive month.
The employment component also hit its lowest since August 2017, whilst input price pressures picked up again in June reaching the highest level in the last 11 months.
The PMI for the non-manufacturing sector rose instead for the fourth consecutive month to 55 in June, back to levels of the end of 2017, with the services PMI stable at 54 (over May), and construction increasing to 60.7 from 60.1 in May.