China June Manufacturing PMI at 50.9... Down from 51.0 in Previous Month (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] China's manufacturing Purchasing Managers' Index (PMI) for June was recorded at 50.9.

According to the National Bureau of Statistics of China on the 30th, China's manufacturing PMI for June was recorded at 50.9, which is lower than the previous month's 51.0.

However, it exceeded the market expectation of 50.8.

The PMI index, which indicates manufacturing business trends, signifies economic expansion if it exceeds the baseline of 50, and economic contraction if it does not. The PMI is calculated based on corporate surveys regarding new orders, shipments, inventory levels, and more.

Although there are signs of a rebound in the Chinese economy following the COVID-19 pandemic, recent increases in raw material prices have had some negative effects on China's manufacturing trends.

In particular, new export orders have contracted for two consecutive months.

An official from the authorities stated, "The somewhat contractionary manufacturing trend appears to be influenced by semiconductor supply shortages, bottlenecks in coal supply, and resulting power shortages."

Additionally, as major countries around the world recover economically, increasing inflationary pressures are expected to pose a burden on China's manufacturing sector.

The Chinese government plans to control raw material prices to minimize inflation risks. To this end, the government will release its stockpiled raw materials into the market and intensively crack down on market disruption activities in the raw materials market.

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