Does recent China manufacturing PMI suggest the mini-stimulus is working?
This past Tuesday’s release of final May HSBC Manufacturing PMI reached a 4-month high. Although the final revision of 49.4 was lower than the May flash estimate of 49.7, it was still a large improvement over April’s 48.1 reading. The new export orders component (53.2, a 4-year high) was a particular bright spot, and the UBS Economics Team believes the mini-stimulus contributed to better data. This news, combined with stronger National Bureau of Statistics (NBS) PMI and announcement of additional targeted monetary stimulus, is boosting sentiment for China’s economy.
Read the full report: UBS