China: Strong manufacturing data – TDS
Analysts at TD Securities note that China’s Manufacturing PMI for July ticked up to 49.7 from 49.4 in June amid ongoing government support for companies.
“Yet the below-50 reading still signals contraction. In contrast, non-manufacturing PMI under-performed, falling to 53.7 from 54.2 in June. Perhaps most concerning, but completely in line with indications from other trade data globally, is the fact that new export orders remained very contractionary at 46.9, showing that US trade tensions and the global cycle continues to weigh most apparently on China.”
“New export orders remained one of the weakest sub-indices on the PMI data. Larger-scale enterprises moved back above 50 however, to 50.7, which is the one bright spot in the manufacturing PMI report as last month all three levels of industry were sub-50.”