Caixin China June manufacturing PMI rises to 51.7
SINGAPORE (ICIS)–Caixin’s China manufacturing purchasing managers’ index (PMI) rose to 51.7 in June from 48.1 in May as factory activity recovered on the back of easing regional COVID-19 lockdowns, the Chinese media firm said on Friday.
A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.
The June reading was the first expansion in fourth months and marked the strongest rate of increase seen since May last year, Caixin said in a statement.
Chinese manufacturers registered the first expansion of output since February at the end of the second quarter.
The rate of growth was the quickest seen since November 2020, with a number of firms linking the rise to the return to more normal operations and reopening of production lines as COVID-19 restrictions were eased.
Total new orders likewise returned to growth in June, though the rate of increase was only modest. New export business also rose modestly.
“Covid lockdowns and other restrictions eased in June, facilitating a gradual recovery in manufacturers’ operations. Supply and demand were on the rise, with supply improving more,” said Wang Zhe, senior economist at Caixin Insight Group.
“Restoration in the post-pandemic era remained the focus of the current economy, yet its base was far from strong. Deteriorating household income and expectations caused by a weak labor market dampened the demand recovery,” Wang added.
China’s official manufacturing PMI released on 30 June also showed expansion at 50.2 in June.
The Caixin PMI mostly tracks smaller and private firms while the official PMI covers larger, state-owned companies.