China PMI data shows signs of manufacturing recovery

01 July 2009 08:25  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s manufacturing industry is showing signs of recovery as the Purchasing Managers’ Index (PMI) was reported above 50% for the fourth consecutive month in June, analysts and industry players said on Wednesday.

The country’s PMI was 53.2% in June, up from 53.1% in May and above the 50% threshold that indicates expansion, data from the China Federation of Logistics & Purchasing (CFLP) showed on Wednesday.

The PMI serves as a barometer of the monthly performance of China’s factories and is based on surveys from purchasing and supply managers at more than 700 manufacturers across the country.

"The continuous stay of above 50% in June shows the rebounding manufacturing industry in China," Zhang Liqun, a researcher from the Development Research Centre of the State Council, said.

The continuous rise in investment and consumption had boosted economic activities, he added.

"We should see a stable development of industry manufacturing sector in July and August [and] even [in] the second half of this year because the general economic situation is warmer in our country," an official from the CFLP said in Mandarin.

Among the 20 sectors of the PMI, the index for new orders in June reached 55.5%, while the production index was at 57.1%, according to the CFLP.

Brokerage CLSA Asia-Pacific also published China PMI data for June on Wednesday. It reported a PMI of 51.8%, up from 51.2% in May.

Pearl Bantillo contributed to this article

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