China’s Factory Activity Shrinks for Second Straight Month, Raising Concerns About Economic Recovery

China’s factory activity contracted for the second consecutive month in June, according to official data released on Sunday. This underscores the country’s fragile economic recovery ahead of a key political gathering focused on deepening reforms. The manufacturing purchasing managers’ index (PMI), a key gauge of factory output, remained at 49.5 in June, signaling a decline in activity. While the non-manufacturing PMI expanded, it also registered a decline from the previous month. The data highlights challenges for policymakers, including a prolonged debt crisis in the property sector, sluggish consumption, and high unemployment.

Mongolian Voters Head to Polls in Election Marked by Corruption Concerns

Mongolia holds parliamentary elections on Friday, with voters choosing a new government amidst concerns about corruption and economic challenges. The ruling Mongolian People’s Party appears to be favored, but other parties are hoping to capitalize on voter discontent. Issues like unemployment, inflation, and the recent “dzud” (combination of drought and severe weather) are also major concerns for voters.

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