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.

The figure beat market expectations. Previously, a Reuters poll of 23 economists forecast the PMI would rise to 50.1 from May's 50.0. 

According to the NBS, China's equipment manufacturing PMI reached 52.5, up 0.4 points on 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 stood at 52.1, and the high-tech manufacturing PMI averaged 52.9. Both figures not only remained at relatively strong levels but also markedly exceeded their first-quarter and year-ago averages, China Media Group (CMG) reported.

Li Chang'an, an economist at the University of International Business and Economics, told the Global Times on Tuesday that the high-tech manufacturing sector has maintained relatively rapid expansion, becoming a key pillar supporting the stabilization and recovery of the overall manufacturing industry. 

"With sustained expansion and steadily rising indices over several months, high-tech manufacturing has effectively offset downward pressure from some traditional manufacturing sectors, stabilized overall performance, and injected new momentum into the economic growth," Li noted.

In June, both production and demand expanded at a faster pace. The production index stood at 51.4, up 0.2 points month-on-month, driven by the steady rollout of policies, including infrastructure development, the launch of major projects and a recovering consumer market that has led strengthened 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, China's manufacturing PMI 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 expansion territory after five 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, CMG reported.

Despite pressure from both domestic and external markets, the data indicates that China's manufacturing sector is showing a positive trend of overall stabilization and recovery, which will better support the stability and growth of the national economy due to its critical pillar role, Li said.

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 reached 50.4 in June, up 0.1 percentage points from the previous month. 

Li said that the services sector is also undergoing transformation and upgrading. With the support of new technologies, modern services are developing rapidly, giving rise to a large number of new business formats and new economic models. In the future, it will continue to serve one of the largest driving forces of economic growth, the expert added.

Moreover, 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 surpassed 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.

The June PMI data overall released positive and stable signals, indicating that China's economy is moving toward stabilization and recovery, providing support for economic growth in the second half of the year. However, to achieve a stronger recovery, it is still necessary to further boost domestic demand, improve market expectations, and continue promoting high-quality development in both the manufacturing and service sectors, Li added.