Chinese PMI close to bottoming out

The purchasing managers' index for both non-manufacturing and manufacturing services may be stabilizing, says BBVA.

Encouraging signs include how China's non-manufacturing PMI has risen to a three-month high in the latest June data, while official manufacturing PMI continues to signal expansion with a 50.2% performance in May.

These support the assessment that Chinese PMIs are gearing up for a comeback as the government rolls out more policies to spur the economy.

Here's more from BBVA:

While recent indicators continue to show a slowdown, the latest PMI figures show signs of stabilizing trends. Today, China’s non-manufacturing purchasing managers’ index for June rose to a three-month high of 56.7% from 55.2% in May, which indicates that the service sector expanded at a faster pace than the previous month. Conversely, China’s official manufacturing PMI in June moderated slightly to 50.2% (consensus: 49.9), from 50.4% in May, but critically still remains above the 50 level, signaling expansion. Despite the uncertain global environment, we continue to believe that China’s economy is poised for a rebound in the second half due to supportive fiscal and monetary policy measures, keeping full-year GDP growth at close to 8%.