If you’re wondering why Xi Jinping suddenly seems more willing to come back to the negotiating table with Trump, it’s because of news like this:
China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey.
The Caixin/Markit factory Purchasing Managers’ Index for June was 49.4 — the lowest since January when the indicator came in at 48.3.
PMI readings above 50 indicate expansion, while those below that signal contraction.
The lackluster reading was due to new orders falling into contractionary territory, pointing to shrinking domestic demand, said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin. The index measuring new export orders was also in negative territory,.
“Overall, China’s economy came under further pressure in June,” Zhong wrote in a report.