Quick Data Update: PMIs show manufacturing is stable but still weak; services rebounded.

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.