China: Non-manufacturing sector key to withstand the trade war blow - ANZ

Betty Wang, analyst at ANZ, notes that China’s first manufacturing PMI data following the re-escalation of the trade war suggests further downside risks to its export sector, with small companies taking the biggest hit so far.

Key Quotes

“The non-manufacturing PMI, however, stood firm in May, thanks to the resilient performance of the transportation and retail sectors during the Labour Day holiday period.”

“Looking ahead, June’s data will be critical to shed more light on the overall growth momentum for the second half of the year.”