Why An Unexpected Contraction In Chinese Manufacturing Is A Problem

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Chinese manufacturing unexpectedly contracted in May for the first time in seven months. On Thursday, HSBC Corp. said the preliminary version of its monthly purchasing managers index fell to a seven-month low of 49.6 from April's 50.4. Numbers below 50 show a contraction. 

U.S. manufacturing grew at its slowest pace since October. The Markit "flash" U.S. Manufacturing Purchasing Managers Index fell to a seven-month low of 51.9 in May from 52.1 in April. Markit's flash Eurozone Composite Output index rose to a three-month high at 47.7 in May, compared to 46.9 in April. 

Separate data on Thursday showed rising home prices in the U.S., and new home sales rose 2.3 percent in April. 

The median price of a new home hit $271,600 in April, while the average new-home price reached $330,800, both record highs, the Commerce Department reported Thursday.

Durable goods orders for April are released Friday after the data unexpectedly fell 5.7 percent in March as demand for Aircraft fell. 

 

 

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