China Manufacuring Slump Widens in June on Lower Int'l Demand, Inventory Clearing
U.S. markets are indicated for a lower open Thursday following new data showing continued slowdown in China manufacturing.
The HSBC flash PMI fell to 48.3 in June, from a reading of 49.2 in May. Levels below 50.0 indicate contraction in a reporting segment from the previous month.
Key factors in the lower number include falling external demand, easing domestic demand, and efforts to clean-up inventories versus manufacturing new product.
Cuts were made earlier in the week by HSBC and other institutions on growth expectations in China over the next year. Most now see China GDP growing 7.4 percent in 2013, down from expectations of 8.2 percent previously estimated. China's government is looking for growth of 7.5 percent this year.
The S&P 500 is indicated 0.8 percent lower, Dow Jones down 0.6 percent, and Nasdaq 0.9 percent ahead of the opening bells. The iShares FTSE China 25 Index Fund (NYSE: FXI) ETF is also on watch today.
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