Reported 12 months ago
Caixin's China Manufacturing Purchasing Managers' Index (PMI) for June was 51.8, marking a 3-year high with a 0.1 point increase from May. The index has been above the expansion-contraction line for eight consecutive months, signaling a continuous rise in manufacturing industry prosperity. Concerns remain over increasing competition and weakening market conditions, as reflected by a notable decline in optimism among manufacturing entrepreneurs despite the positive outlook. Caixin's data contrasts with the official figures released by the National Statistics Bureau, as Caixin focuses more on small and medium-sized enterprises. Sub-indices of Caixin's PMI show continuous expansion in production and demand, with notable growth in consumer goods production, although the growth rate of new export orders has slowed down. Despite employment index remaining in contraction territory for the tenth consecutive month, the rate of expansion almost offsets the layoff rate. Rising material costs like steel, copper, and aluminum, along with increased shipping costs, have pushed up production costs. Entrepreneurs' optimism has notably declined, with production and operation expectation index dropping over 3 points in June to the lowest since December 2019. Despite the positive manufacturing outlook in June, challenges such as insufficient market confidence and effective demand persist, requiring further strengthening of economic support policies for the future.
Source: YAHOO