Data from the National Bureau of Statistics shows that China's manufacturing purchasing managers' index rose in June, returning to expansionary territory. The non-manufacturing business activity index and the composite PMI output index also increased, indicating a recovery in the country's economic momentum.

In June, the manufacturing PMI was 50.3%, up 0.3 percentage points from the previous month, moving back above the expansion threshold. The non-manufacturing business activity index and the composite PMI output index were 50.2% and 50.6%, respectively, both rising 0.1 percentage points from May, reflecting an improvement in the overall economic climate.

Manufacturing PMI Climbs into Expansion Zone

The manufacturing PMI for June stood at 50.3%, indicating a faster pace of production and business activities compared to the prior month.

Production and Demand Both Expand

The manufacturing production index reached 51.4%, a rise of 0.2 percentage points from May, showing accelerated production expansion. The new orders index moved into expansion at 51.2%, increasing by 1.3 percentage points, which points to an improvement in market demand. By sector, industries such as agricultural and food processing, specialized equipment, and computer, communication, and electronic equipment had both production and new order indices above 54.0%, indicating robust activity in both supply and demand. Conversely, sectors like chemical fibers, rubber and plastic products, and ferrous metal smelting and rolling processing continued to have indices below the critical 50-point mark, suggesting persistent weakness in both supply and demand.

Large and Medium Enterprises Remain in Expansion

The PMI for large manufacturing enterprises was 50.7%, maintaining expansion, while the PMI for medium-sized enterprises rose significantly by 1.9 percentage points to 50.5%, showing a clear recovery in business conditions. The PMI for small enterprises was 48.2%, indicating a slight decline in their business climate.

High-Tech Manufacturing Shows Continued Strength

The PMI for high-tech manufacturing was 53.5%, up 0.6 percentage points and significantly higher than the overall manufacturing PMI, reflecting sustained positive development and a stronger leading role for the advanced manufacturing sector. The PMI for equipment manufacturing and consumer goods industries stood at 52.5% and 50.2%, respectively, rising 0.4 and 0.5 percentage points, indicating improved sentiment in these sectors. The PMI for energy-intensive industries remained unchanged at 47.1%.

Market Expectations Improve

The manufacturing production and business activity expectation index was 54.3%, up 0.4 percentage points, showing that corporate confidence in the market has strengthened. By industry, sectors including specialized equipment, railway, ship, aerospace equipment, and electrical machinery and equipment had expectation indices in a high-confidence range above 57.0%, indicating greater optimism among related firms about industry prospects.

Non-Manufacturing Business Activity Index Edges Higher

The non-manufacturing business activity index was 50.2% in June, a slight increase of 0.1 percentage points, reflecting a modest recovery in the non-manufacturing sector's climate.

Services Sector Expansion Accelerates

The services business activity index was 50.4%, up 0.1 percentage points, indicating an improvement in business conditions. By industry, sectors such as telecommunications, radio, television and satellite transmission services, internet software and IT services, monetary and financial services, and insurance had business activity indices in a high-confidence range above 55.0%, showing relatively fast growth in business volume. Sectors like air transport and real estate continued to have indices below the critical point. The services business activity expectation index was 56.0%, rising 0.6 percentage points, reflecting positive corporate expectations for market development.

Construction Sector Climate Shows Slight Improvement

The construction business activity index was 49.0%, up 0.2 percentage points, indicating a minor recovery in business conditions. The construction business activity expectation index was 51.1%, remaining in expansion territory.

Composite PMI Output Index Maintains Expansion

The composite PMI output index was 50.6% in June, up 0.1 percentage points, indicating a slight acceleration in the overall expansion of business activities among Chinese enterprises. This index is composed of the manufacturing production index at 51.4% and the non-manufacturing business activity index at 50.2%.