China's manufacturing sector showed renewed momentum as its Purchasing Managers' Index (PMI) rose to 49.7 in June, marking a 0.2-point increase from May and the second consecutive monthly gain, according to National Bureau of Statistics data released Monday. The non-manufacturing PMI also edged up 0.2 points to 50.5 during the same period.
Key indicators revealed strengthening fundamentals: The production index climbed to 51.0 (+0.3 points) while new orders returned to expansion territory at 50.2 after two months below the growth threshold. This dual improvement in supply and demand signals stabilizing industrial activity amid global economic uncertainties.
Notably, 11 of 21 surveyed industries reported expansion in June – four more than in May – suggesting the recovery is gaining breadth across sectors. Analysts suggest this trend could bolster confidence in Asian supply chains and create strategic opportunities for investors monitoring regional markets.
The gradual improvement aligns with recent measures to stimulate domestic demand and optimize industrial policies. While still below the 50-point threshold separating contraction from expansion in manufacturing, the sustained upward movement indicates potential for stronger second-half performance.
