China'S Manufacturing PMI Rebounded To 51.7 In June

With the overall improvement of the situation in the prevention and control of health incidents, the resumption of work and production continued to advance. In June, the manufacturing industry recovered, and the expansion of production and business activities resumed.

The Caixin China Manufacturing Purchasing Manager Index (PMI) for June, released on July 1, recorded 51.7, higher than 3.6 percentage points in May, ending the contraction trend of the previous three months and returning to the expansion range, which is the highest since June 2021.

This is consistent with the trend of PMI. The PMI of manufacturing industry in June, released by the National Bureau of statistics, was 50.2, 0.6 percentage points higher than that in May, and it was also back above the boom and bust line.

According to the breakdown data, the supply in June was significantly stronger and the demand was also improved. Both the production index and the new order index of the month returned to the expansion range, with the production index reaching a new high since December 2020. The output of the three major categories covered by the survey increased, and the growth rate of consumer products was the most significant. In terms of demand, the index of new orders rose slightly above the boom and bust line, with a weaker rebound than the supply side. The interviewed enterprises reported that domestic health events improved, and customer demand increased, which led to the recovery of sales. However, the overall market situation was relatively weak, and the impact of health events was still on, dragging down the overall growth rate. Foreign demand also improved. In June, the index of new export orders rose to the expansion range for the first time since August 2021.