Manufacturing Sector PMI Returns to Expansion Territory
In June, the Manufacturing Purchasing Managers' Index (PMI) stood at 50.3%, marking a 0.3 percentage point increase from the previous month and re-entering the expansionary zone. Broken down by enterprise size, large enterprises recorded a PMI of 50.7%, down 0.4 percentage points from the prior month but still above the 50-point threshold. Medium-sized enterprises saw a PMI of 50.5%, a significant rise of 1.9 percentage points, pushing them above the threshold. In contrast, small enterprises had a PMI of 48.2%, a 0.3 percentage point decline, remaining below the critical threshold.
Regarding the five sub-indices that compose the manufacturing PMI, the Production Index and New Orders Index were above the threshold. The Raw Materials Inventory Index, Employment Index, and Supplier Delivery Time Index all remained below it. The Production Index rose by 0.2 percentage points month-over-month to 51.4%, indicating an acceleration in manufacturing production activity. The New Orders Index increased by 1.3 percentage points to 51.2%, suggesting a recovery in manufacturing market demand. The Raw Materials Inventory Index fell by 0.2 percentage points to 48.4%, reflecting a continued decline in manufacturers' primary raw material stockpiles. The Employment Index dropped by 0.1 percentage points to 48.5%, signaling a slight cooling in employment sentiment within the manufacturing sector. The Supplier Delivery Time Index edged up by 0.7 percentage points to 49.9%, still below the threshold, indicating a slight slowdown in the delivery of raw materials by suppliers.
Non-Manufacturing Sector Shows Modest Improvement
In June, the Non-Manufacturing Business Activity Index was 50.2%, up 0.1 percentage points from the previous month, indicating a slight pickup in the sector's economic vitality. By industry, the Construction Business Activity Index rose by 0.2 percentage points to 49.0%. The Services Business Activity Index increased by 0.1 percentage points to 50.4%. Within the services sector, high-activity indices exceeding 55.0% were observed in telecommunications, broadcasting, television, and satellite transmission services; internet software and information technology services; monetary financial services; and insurance. Conversely, industries like air transport and real estate reported business activity indices below the 50-point threshold.
The New Orders Index for the non-manufacturing sector surged by 3.0 percentage points to 48.0%, indicating a clear improvement in market demand conditions. In detail, the Construction New Orders Index rose by 2.8 percentage points to 46.3%, while the Services New Orders Index climbed by 3.1 percentage points to 48.4%. The Input Price Index fell by 2.5 percentage points to 49.7%, dipping below the threshold, signifying a general decline in the overall cost of inputs for business operations in the non-manufacturing sector. Construction saw its Input Price Index drop by 3.3 percentage points to 50.4%, whereas the Services Input Price Index decreased by 2.4 percentage points to 49.6%.
The Selling Price Index declined by 0.4 percentage points to 48.4%, indicating a continued fall in the overall sales prices for non-manufacturing enterprises. For construction, the Selling Price Index rose by 1.2 percentage points to 49.8%, while in services, it fell by 0.7 percentage points to 48.2%. The Employment Index improved by 0.2 percentage points to 45.8%, showing a slight improvement in employment sentiment. Specifically, the Construction Employment Index went up by 0.9 percentage points to 42.3%, and the Services Employment Index remained unchanged from the previous month at 46.4%. The Business Activity Expectations Index rose by 0.5 percentage points to 55.3%, reflecting generally positive expectations for future market development among non-manufacturing enterprises. Construction's expectations index fell by 0.4 percentage points to 51.1%, while services' expectations index rose by 0.6 percentage points to 56.0%.
Composite PMI Output Index Edges Higher
In June, the Composite PMI Output Index was 50.6%, a 0.1 percentage point increase from the previous month. This data suggests that the overall production and operational activities of Chinese enterprises have expanded at a slightly accelerated pace.