Bottom line: Manufacturing remained weak in June. New orders are flat, hinting at a weak July. Employment PMI remains below 50, a worry for Beijing's primary economic policy goal of employment stability. But, services look much better in June, new orders in particular. Given my GDP trackers are running around 6.7% so far in Q2, the improved service PMIs hint at a modest improvement in June and a Q2 growth number around 6.7-6.8%. But, we will certainly need to see more data to increase our confidence in that number.
China's June manufacturing PMI was unchanged from May at 50.2, a weak but stable reading. New orders remained flat at 50.1. Employment came in below the 50 level, implying a contraction, at 48.
Services rebounded to 53.8 from 53.2, well above 50. Service new orders have bounced back to 51.3 The service numbers hint at a modest improvement in overall activity in June.