China’s manufacturing output expanded at the weakest pace in seven months in June, as overseas orders dropped amid a protracted debt crisis in the eurozone.
China’s Purchasing Managers’ Index (PMI) fell to 50.2 in June from 50.4 in May, the Beijing-based National Bureau of Statistics and China Federation of Logistics & Purchasing reported yesterday.
That compares with the 49.9 median estimate of economists.
The data indicated that the Chinese government may need to announce additional stimulus to check the deceleration in the world's second-biggest economy.
The gauge of export orders in the federation’s index contracted for the first time since January.
A separate survey by HSBC and Markit Economics showed today that Chinese manufacturing activity deteriorated at a faster clip in June than in May, as output, new-order bookings and employment declined further.
The final reading of HSBC's China manufacturing PMI for June dropped to 48.2 from 48.4 in May, according to the final result of a survey by HSBC.
The print was slightly better than HSBC's preliminary reading of 48.1, but remained below the 50-point level, indicating that business conditions worsened at Chinese factories.
Stocks in China and other Asian markets advanced on Monday, with the MSCI Asia Pacific Index advancing 0.3% in its fourth day of gains as of 11:30 a.m. in Tokyo.
The Nikkei in Japan was up ~0.1% while the Shanghai Composite Index dropped 0.1%. The Kospi in South Korea was up 0.1%. The Straits Times index rose ~0.5% while the Taiex in Taiwan was up ~0.6%. The S&P/ASX 200 index was up ~1.2%.
Markets in Hong Kong are shut for a public holiday.