China Manufacturing Employment Contracts, Demand Disappoints Despite Headline PMIs Beat

n a sign that China’s massive stimulus injections as the nation reopens are working, tonight’s PMIs both rose from May and beat expectations.

The government’s official Manufacturing PMI rose from 50.6 to 50.9 (beating expectations of 50.5)

The government’s official Services PMI rose from 53.6 to 54.4 (beating expectations of 53.6)

However, as Bloomberg report, while parts of the economy have recovered from the virus shutdowns, there’s an apparent divergence between demand and supply – factories and companies have returned and output is growing again, but exports and domestic retail sales are shrinking (and manufacturing employment fell back into contraction at 49.1).

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