The Caixin Manufacturing PMI soared to 50.4 last month, climbing back above the key level of 50.0 that separates growth from contraction. That easily topped a reading of 49.5 forecast by economists while also outperforming the May figure of 49.6 that marked the first contraction in 11-months. Total new orders increased to 51.0 in June - the highest in three months - from the prior month's 50.3. Production also quickened, while the rate of job dismissals eased to its slowest in three months.
Compared with the official measure, the Caixin PMI tends to be a better gauge of activity at smaller private manufacturers in the country. However, there are concerns that the current pickup in activity is merely a temporary bounce in manufacturing. In the meantime, the Yuan is slightly weaker against the dollar following the announcement, edging back above 6.7800.