China's manufacturing demand in July is still weak

The initial value of the HSBC China Manufacturing July Purchasing Managers Index was released on the 24th, rising to a five-month high of 49.5, but still below the demarcation line. Among them, the output index was 51.2, a nine-month high. Affected by this, the price of gold rebounded at a low level, and the price of spot silver rose.

From the perspective of various sub-items, manufacturing output turned to expansion in July, new orders contracted and decelerated, new export orders contracted and decelerated; employment contraction accelerated; backlog work turned to expansion; ex-factory price and input price fell slowdown; procurement stocks shrank and slowed down, finished products Inventory turned to shrink; purchases turned to expansion; supplier supply time turned to delay.

Qu Hongbin, chief economist of HSBC China, believes that the initial value of PMI has moderately rebounded to the highest value in five months, indicating that the previous loose measures have begun to produce results. However, this figure is still below the 50-point boundary, indicating that total demand is still weak and employment pressure is increasing, which requires policies to increase easing to support economic growth and employment.