China PMI Shows Resilience, Trade Risks Grow – Commerzbank
Commerzbank analysts report that China's private manufacturing PMI eased to 51.7 but still achieved the strongest quarter in nearly six years, while official PMIs also exceeded expectations. However, trade risks are increasing.
Commerzbank's Charlie Lay and Dr. Henry Hao note that China's private manufacturing PMI edged down to 51.7 in the latest reading, yet the quarterly average remains the highest in almost six years. Official manufacturing and non-manufacturing PMIs also came in above consensus, signaling continued economic resilience.
Despite the solid data, the analysts caution that trade risks are mounting, particularly amid ongoing geopolitical tensions and potential new tariffs. The yuan's outlook may face headwinds from these external pressures, even as domestic activity holds up.
The report underscores a divergence between near-term economic strength and medium-term trade uncertainties, keeping the yuan's trajectory dependent on policy responses and global trade developments.
Source: FXStreet Forex News