Chinese factory activity in June beat expectations, expanding by 50.5 index points, according to the China manufacturing Caixin Purchasing Managers’ Index (PMI) released on Monday.
Although slightly slower than the previous month, this was the second consecutive month of growth in manufacturing activity.
Caixin Insight Group chief economist Wang Zhe noted that improving domestic sales was the main driver of growth, while new export business remained broadly unchanged.
Economists polled by Reuters had expected a reading of 50.2 for June, while the official PMI stood at 49 index points.
The increase in the total volume of new orders prompted companies to expand their purchasing activity, although the pace of stock accumulation was only marginal. Finished goods stocks, however, experienced a slight decline.
Inauguration of a major China-Africa exhibition in the center of the country
Although employment declined for the fourth straight month as manufacturers remained cautious about workforces, companies were generally upbeat about the twelve-month production outlook in June, anticipating stronger economic conditions and improved sales. .
Although slightly slower than the previous month, this was the second consecutive month of growth in manufacturing activity.
Wang stressed the need to strengthen policy support at the macro level and increase the effectiveness of its implementation at the micro level to directly benefit market players, boost employment and improve market expectations.
The China Securities Journal attributed the positive start to the A-share market in July to the consecutive two-month expansion of the manufacturing sector. The Shanghai Composite Index rose 1.29%, the Shenzhen Component Index rose 0.89% and the ChiNext Index rose 1.03% on Monday morning.
Article republished from the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to the original article:https://news.cgtn.com/news/2023-07-03/China-s-Caixin-manufacturing-PMI-beats-expectations-at-50-5-in-June-1l8pFCzSNfq/index.html
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