FAST FIVE: China Manufacturing Employment Contracts, Demand Disappoints Despite Headline PMIs Beat

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“While work restart levels are high, the recovery of demand has been slow, weighing on the pace of improvement in industrial production,” Lu Zhengwei, chief economist at Industrial Bank Co in Shanghai, wrote in a report this week.

Additionally, a separate PMI indicator that gauges China's high-tech industries slowed significantly this month.

“The new export orders sub-index remained low at 32.6 in June, unchanged from May and April, suggesting sustained headwinds from overseas markets,” Nomura economists led by Lu Ting wrote in a report.

The surge in exports of coronavirus-related medical supplies is largely due to price rises, which is “likely unsustainable,” they wrote.

“We expect a bumpy recovery path filled with uncertainty, as China is caught between domestic policy stimulus, remaining social distancing rules and slumping external demand,” according to the report.

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