The domestic manufacturing sentiment in June was the same as the previous month, with the service industry sentiment slightly declining. The overall production and operation activities of enterprises continued to expand, but the pace of expansion has slowed.
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Shenwan Hongyuan believes that
the June PMI highlights the necessity for policy intensification. Weak domestic demand remains the key factor suppressing economic sentiment. Looking ahead, policy intensification will remain the most important theme in the macroeconomics for the second half of the year, especially focusing on promoting investment and consumption through energy-saving policies and accelerating fiscal expansion to stabilize infrastructure. At the same time, it is necessary to stabilize the liquidity of real estate companies on the supply side through quasi-fiscal tools to promote the recovery of the housing completion rate from low levels.
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Hongta Securities believes that from the perspective of production and demand,
the decline in production is greater than that in demand, pushing the production-demand ratio to converge. However, the new orders index continues to be in the contraction zone and has slightly declined compared to the previous month, reflecting that the market demand for manufacturing remains insufficient.
