Investing.com - Manufacturing gauges in China released on Friday painted a mixed picture with an unexpected drop in the Caixin survey and an expected result from the China Federation of Logistics and Purchasing (CFLP) and National Bureau of Statistics.
The June semi-official CLFP manufacturing PMI from China came in at 50.0 as expected, a slight down tick from 50.1 the previous month and just on the edge of expansion. The non-manufacturing PMI came in at 53.7, gaining on 53.1 the previous month.
"After recovery in the first quarter, the Chinese economy saw signs of slowing down again in the second quarter. The government needs to work to stabilize demand," Zhang Liqun, a government economist advising CFLP, said in the statement.
The Caixin manufacturing PMI for June dipped to 48.6, compared with a 49.1 level expected, and down from 49.2 the previous month.
"Overall, economic conditions in the second quarter were considerably weaker than in the first quarter, which means there has been no easing of the downward pressure on growth. Against the backdrop of a turbulent external environment, and in order to avert a sharp economic decline, the government must strengthen its proactive fiscal policy while continuing to follow prudent monetary policy," said Zhong Zhengsheng, director of Macroeconomic Analysis at CEBM Group in Caixin's PMI release.