China PMI Drops To Four Month Low

By Douglas A. McIntyre Updated Jan 13, 6:10AM EST · Published Jul 1, 5:24AM EDT

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China PMI Drops To Four Month Low — © Thinkstock

Brexit is sure to damage the economic growth of both the EU and U.K. America’s GDP growth has been lackluster. Japan’s decades long financial trouble has not ended, and will not soon. Add to that the bad new from the Caixin China Purchasing Managers’ Index which shows the world’s second largest economy by GDP posted only 48.6 in June. Any number below 50 signals contraction.

Caixin reported

The reading of 48.6 for June is the lowest since January, and marks the 16th consecutive month of contraction due to sluggish demand at home and abroad

Commenting, Zhong Zhengsheng, director of Macroeconomic Analysis at CEBM Group, a subsidiary of Caixin Insight Group, said

“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.”

Methodology:

The Caixin China Manufacturing PMI is compiled by Markit, a global financial information services provider, based on data from monthly replies to questionnaires sent to purchasing executives in over 500 manufacturing companies. It tends to focus more on private sector companies, unlike a similar government-compiled PMI that focuses more on the state-run sector.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.