China's PMI Improves in June, Signalling Strengthening Economic Momentum

China’s Purchasing Managers’ Index (PMI) increased in June as the country’s economy continued to show strengthening, according to official data released on Tuesday. Data from the National Bureau of Statistics (NBS) showed the manufacturing PMI rose to 50.3 in June, up from 50 in the previous month. The figure returned to expansionary territory and marked the second-highest reading so far this year. Meanwhile, the non-manufacturing PMI, which covers the construction and services sectors, stood at 50.2 in June, up from 50.1 in May. NBS statistician Huo Lihui said the data indicated that the overall level of economic activity increased this month. In the PMI indicator, a reading above 50 indicates expansion, while a figure below 50 signals contraction. Both output and demand in the manufacturing sector experienced expansion in June. The most notable performance was seen in sectors such as agricultural and sideline food processing, special equipment manufacturing, and the computer, communication, and other electronic equipment industries. The high-tech manufacturing sector also recorded faster growth, with business activity strengthening in the equipment manufacturing and consumer goods industries. Huo said business confidence also improved. Companies in the special equipment, railway, shipbuilding, aerospace equipment, and electrical machinery sectors remained optimistic about industry prospects. In the non-manufacturing sector, the expansion of the services sector accelerated, with business expectations continuing to rise. The construction industry also showed signs of improvement. Commenting on the data released on Tuesday, Wu Wei, an analyst from the China Logistics Information Center, said that pent-up demand in investment and consumption is expected to be realised more quickly, thereby further strengthening the foundation for a stable economic recovery in China.