Manufacturing News

China's factory activity expands in June

China's June factory activity expanded for the first time since February amid the government's effective measures to control the pandemic and implement a package of stimulus policy measures, the National Bureau of Statistics said on Thursday.

The official purchasing managers index for China's manufacturing sector came in at 50.2, compared with 49.6 in May, data from the NBS showed, returning to the expansion territory for the first time since February.

A PMI reading above 50 points to expansion, while one below signals contraction.

Zhao Qinghe, a senior statistician with the NBS, said China's economic recovery is gathering pace with better containment of the pandemic and stronger policy support.

A sub-index for production came in at 52.8 versus 49.7 a month earlier, and a gauge of new orders came in at 50.4 compared with 48.2 in May.

China's non-manufacturing PMI was at 54.7, after 47.8 in May. And the country's official composite PMI, which includes both manufacturing and services activity, came in at 54.1 in June, compared with 48.4 in May, according to the NBS.

Despite the improvement in PMI readings, Zhao from the NBS warned of uncertainties both at home and abroad, saying more efforts should be carried out to better implement the government's stimulus policy measures, actively expand effective demand and consolidate the recovery momentum.

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