Industrial robots are operating on an intelligent production line in a smart manufacturing enterprise in Yangzhou, East China's Jiangsu Province. Photo: VCG

China’s manufacturing Purchasing Managers’ Index (PMI) in June came in at 50.3 , up 0.3 points from May, boosted by the expansion of both production and demand as well as the continuous improvement in the high-tech manufacturing sector, data from the National Bureau of Statistics (NBS) showed on Tuesday.

It beat market expectation. Previously, a Reuter poll of 23 economists forecast the PMI would rise to 50.1 from May’s 50.0. 

In addition, the index has remained above or at the 50 threshold for four consecutive months. The average manufacturing PMI for the second quarter stood at 50.2, returning to the expansion territory after five consecutive quarters of contraction on average. It indicates that the foundation for stable manufacturing operations in the second quarter has been further consolidated, and the positive development trend is strengthening, China Media Group (CMG) reported.

According to the NBS, China’s equipment manufacturing PMI reach 52.5, up 0.4 points from the previous month, rising for four consecutive months. The rapid development of artificial intelligence-related industries continued to support faster growth in high-tech manufacturing. The high-tech manufacturing PMI came in at 53.5, up 0.6 points from the previous month, also rising for four consecutive months.

The average equipment manufacturing PMI in the second quarter was 52.1, and the high-tech manufacturing PMI averaged 52.9. Both not only operated at relatively strong levels but were also significantly higher than their first-quarter and year-ago averages, CMG reported.

Both production and demand expanded at a faster pace. In June, the production index stood at 51.4, up 0.2 points month-on-month. Thanks to the steady rollout of policies including "Six Networks" infrastructure development, the start of major projects, and a recovering consumer market led to the improvement of manufacturing demand.

NBS data showed that the new orders index rose to 51.2, returning to expansion territory from May. Meanwhile, as international trade tensions moderated, export demand for Chinese manufactured goods rebounded, pushing the new export orders index back into expansion.

Manufacturing enterprises' market confidence has improved, as the manufacturing production and business activity expectation index rose to 54.3 in June, an increase of 0.4 points from May, according to the NBS.

In the non-manufacturing sector, the business activity index stood at 50.2 in June, up 0.1 points from the previous month. Among them, the services industry expanded at a faster pace, as the services business activity index reach 50.4 in June, up 0.1 percentage points from the previous month. 

The construction industry continued to see improving momentum, with clear signs of a pick-up in market supply and demand. In June, the business activity index for civil engineering construction rose above 55, up more than 3 points from the previous month. The new orders index ended its 11-month run below 50 and climbed above 51, according to the report.


Global Times