China's Caixin Manufacturing PMI Hits Highest Level in 10 Years in July

Last Month PMI Index 52.8, Above 50 for 3 Consecutive Months Since May

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Last month, China's Caixin manufacturing Purchasing Managers' Index (PMI) reached its highest level in about 10 years.

The PMI is an indicator used to gauge economic trends; a reading above the baseline of 50 indicates an expansion phase, while a reading below 50 signifies a contraction phase.

China's financial information company Caixin announced on the 3rd that the manufacturing PMI for July recorded 52.8, higher than June's 51.2. This is the highest level in nine and a half years since February 2011. It indicates strong optimism among manufacturing workers about economic expansion.

The Caixin manufacturing PMI has been above 50, indicating an expansion phase, for three consecutive months since May.

As the manufacturing PMI compiled by Caixin shows a clear improving trend, expectations for China's economic recovery in the second half of the year are expected to grow further.

The official manufacturing PMI, compiled and released by China's National Bureau of Statistics, also fell to a historic low of 35.7 in February but has remained above 50 for five consecutive months since March.

China's quarterly economic growth rate showed a 'V'-shaped rebound, rising from a record low of -6.8% in the first quarter to 3.2% in the second quarter.

This content was produced with the assistance of AI translation services.