China's manufacturing Purchasing Managers' Index (PMI) held steady at 49.5 in June 2024, showing no change from May, according to data released by the National Bureau of Statistics (NBS) on Sunday.
📉 A PMI below 50 typically signals a contraction in the manufacturing sector, while above 50 indicates expansion. Despite the flat PMI, Zhao Qinghe, an NBS statistician, commented, \"From the perspective of output, China's economy is maintaining expansion, but the continuous recovery momentum still needs to be consolidated.\"
The production sub-index stood at 50.6, suggesting slight growth, and the business expectations index was at 54.4, reflecting optimism in future business conditions.
However, market demand remained insufficient, with the new orders index dipping slightly to 49.5 in June from May's figures. This highlights ongoing challenges in sustaining demand for manufactured goods.
In the non-manufacturing sector, which covers services and construction, the PMI was recorded at 50.5 in June, down from 51.1 in May. This indicates continued expansion, albeit at a slower pace.
Both the services and construction sectors saw slight declines. On the bright side, areas 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 above 55.
Overall, while certain sectors are showing resilience, the mixed PMI signals suggest that China’s economy is navigating through a complex recovery phase. 🌐✨
