China's manufacturing PMI 49 in June; ends 3-month decline

01 Jul '23

1 min read

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Insights

China's manufacturing sector purchasing managers' index was 49 in June, up from 48.8 in May, ending a three-month decline and showing a positive shift towards improving factory activities.
As the proportion of respondents complaining of high raw material and logistics costs dropped for four straight months, the burden on manufacturing businesses eased.

China's manufacturing sector purchasing managers' index (PMI) ended a three-month decline in June, showing a positive shift towards improving factory activities, recent data from the National Bureau of Statistics (NBS) shows. The PMI was 49 in June, up from 48.8 in May.

A reading above 50 indicates expansion, while a reading below reflects contraction.

Among the 21 surveyed industries, 12 showed rising PMIs in June, up from 8 last month.

NBS statistician Zhao Qinghe said this rise points to a better manufacturing climate, an official news agency reported.

The production index returned to the expansion territory and the new order index, though still below 50, also logged an increase.

As the proportion of respondents complaining of high raw material and logistics costs dropped for four straight months, the burden on manufacturing businesses continued to ease.

Large enterprises saw their PMI rise above the boom-and-bust line this month, and medium-sized businesses registered a higher index compared to May, although it is below 50. However, the reading for small firms has dropped in the contraction zone.

The country's non-manufacturing PMI is 53.2 in June as the service and construction sectors continued to see expansion.

Fibre2Fashion News Desk (DS)

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