....this narrative won't help resource stocks. ....but may push...

....this narrative won't help resource stocks.

....but may push China to re-consider their stimulus policy.
China Factory Activity Shrinks Again in Warning to Economy

By Bloomberg News
June 30, 2024 at 11:51 AM GMT+10



China’s factory activity contracted for a second straight month in June, signaling weakness in an area Beijing is betting on to drive the economy.

The official manufacturing purchasing manager index was at 49.5, the National Bureau of Statistics said Sunday. That was the same reading as May, and in line with economists’ prediction in a Bloomberg survey. Any number above 50 points to an expansion.

The non-manufacturing measure of activity in construction and services was at 50.5, the statistics office said. That compares with a forecast of 51, and a May reading of 51.1.

China’s economy has performed unevenly this year, with manufacturing at times being a bright spot while consumption is weighed down by a prolonged real estate crisis.

Trade tensions have added to the challenges. The US and European Union — two of China’s biggest export markets — have sounded the alarm over a surge in cheap Chinese exports, which they say are unfairly bolstered by Beijing’s massive subsidies. Both have threatened to impose tariffs on China’s electric car exports, along with other sectors where Beijing is leading on price.