China’s June factory activity expands
▶ Manufacturing PMI returns to expansion range for first time since Feb
China’s factory and service activities bounced back in June for the first time since February, in the latest sign of accelerating recovery in the Chinese economy, as the impact of the COVID- 19 epidemic weakened and proactive fiscal and monetary policies gradually took effect, according to official data on Thursday.
In the latest move to further shore up the economy, the central government will raise 300 billion yuan ($ 44.6 billion) through financial bond issuance to replenish capital for major projects and special debt projects, and to expand effective investment to boost employment and consumption, according to an executive meeting of the State Council held on Thursday, presided over by Premier Li Keqiang.
The purchasing managers’ index ( PMI) for China’s manufacturing sector came in at 50.2 in June, up from 49.6 in May, while the non- manufacturing PMI in June improved to 54.7 from 47.8 in May, data from the National Bureau of Statistics ( NBS) showed.
“As the epidemic prevention and control situation in China continues to improve and a package of policies and measures to stabilize the economy are taking effect at a faster pace, China’s overall economic recovery has picked up speed,” NBS senior statistician Zhao Qinghe said.
The June PMI data, which came prior to other June economic barometers, offer great hope for an accelerated economic recovery in the world’s second- largest economy since major cities, including Beijing and Shanghai, reined in recent COVID- 19 outbreaks and resumed work and production.
NBS data pointed to an overall leap in new manufacturing orders, logistics and a revival of the service sector.
The rebound of PMI data in June underscored an accelerated recovery of domestic economic activity and stronger demand after the epidemic was brought under effective control in China in June, Zhou Maohua, a macroeconomic analyst at Everbright Bank, told the Global Times on Thursday.
Thursday’s data also showed that the PMI for China’s nonmanufacturing sector came in at 54.7 in June, up 6.9 points from May.