MNI BRIEF: China Private PMI Shows Recovery - Caixin’s Wang

The Caixin China Manufacturing PMI’s June rebound to 50.4 showed manufacturing supply and demand recovered, with the sub-index for output rising 4 points and moving into expansionary territory, according to Wang Zhe, senior economist at Caixin.

However, external demand remained weak as exports of consumer goods faced pressure under the fallout of U.S. tariffs, causing new export orders to contract for a third straight month.

Wang told MNI recently that China’s 1.6% drop in tax revenue since January is expected to persist through the year, as economic growth shifts from tax-heavy real estate toward lower-yielding new energy industries. (See MNI: China’s Tax Revenue Fall)