China’s Manufacturing Purchasing Managers’ Index (PMI) remained steady at 49.5 in June 2024, unchanged from May, according to data released by the National Bureau of Statistics (NBS) on Sunday. The figures highlight a stabilization in the manufacturing sector but also underscore the need for consolidation of recovery momentum.
“From the perspective of output, China’s economy is maintaining expansion, but the continuous recovery momentum still needs to be consolidated,” said Zhao Qinghe, a statistician with the NBS.
The sub-index for production stood at 50.6, indicating an expansion in manufacturing output. The business expectations index came in at 54.4, reflecting continued optimism among manufacturers about future market conditions.
However, market demand showed signs of weakening. The new orders index registered at 49.5 in June, a slight decline from the previous month, signaling insufficient demand in the market. “Market demand remained insufficient,” Zhao noted, emphasizing the challenges ahead.
In the non-manufacturing sector, which includes services and construction, the PMI slightly decreased to 50.5 in June from 51.1 in May, still indicating expansion but at a slower pace. While both the services and construction sectors experienced minor declines, certain industries showed robust growth.
Sectors such as air transport, postal services, telecommunications, radio, television and satellite transmission services, monetary and financial services, and insurance services experienced rapid growth, with activity indexes averaging 55 points or above.
The steady PMI figures suggest that while China’s economy continues to expand, there is a pressing need to bolster recovery efforts and stimulate market demand to ensure sustained growth.
Reference(s):
cgtn.com
