China’s manufacturing sector experienced moderate growth in June, as indicated by the Purchasing Managers Index (PMI) released by the National Bureau of Statistics of China. The PMI for the manufacturing industry stood at 49.0 percent, showing a 0.2 percentage point increase from the previous month. The overall prosperity level of the manufacturing industry also rose during this period.
Analyzing the PMI by enterprise size, large enterprises demonstrated a PMI of 50.3 percent, reflecting a 0.3 percentage point increase from the previous month. Medium-sized enterprises recorded a PMI of 48.9 percent, showing a significant increase of 1.3 percentage points. However, small enterprises experienced a decline with a PMI of 46.4 percent, indicating a decrease of 1.5 percentage points from the previous month.
Among the sub-indexes, the production index and supplier delivery time index exceeded the threshold, indicating an acceleration in manufacturing production activities and a continuous decrease in the delivery time of raw material suppliers. However, the new order index, raw material inventory index, and employment index remained below the threshold, suggesting a relatively weaker market demand outlook, declining raw material inventory, and a slight decline in the employment outlook for manufacturing enterprises.
The non-manufacturing sector, on the other hand, continued its expansion in June, albeit at a slightly slower pace. The non-manufacturing business activity index stood at 53.2 percent, representing a decrease of 1.3 percentage points from the previous month. The construction industry and service industry, two key components of the non-manufacturing sector, demonstrated a business activity index of 55.7 percent and 52.8 percent, respectively.
While the new order index for the non-manufacturing sector remained unchanged at 49.5 percent, indicating a stable market demand outlook, the input price index increased by 1.6 percentage points, suggesting a narrowing decrease in overall input prices. However, the sales price index declined slightly by 0.2 percentage points, indicating a fall in overall non-manufacturing sales prices. The employment index also decreased by 1.6 percentage points, indicating a decline in the employment outlook for non-manufacturing enterprises.
Despite these fluctuations, the expectation index of business activities remained robust at 60.3 percent, indicating that non-manufacturing enterprises maintained strong confidence in the market’s recovery and development.
Overall, China’s manufacturing sector showed moderate growth in June, while the non-manufacturing sector continued its expansion. The comprehensive PMI output index, which reflects the overall production and operation of Chinese enterprises, stood at 52.3 percent, signaling a continued momentum of expansion in the country’s economy.
http://www.stats.gov.cn/english/PressRelease/202307/t20230704_1941008.html