A private gauge of “confidence in China’s manufacturing industries” exceeded estimates in June, adding to evidence that the Chinese economy is maintaining some momentum after a strong start to the year.
The Caixin Media and Markit Economics manufacturing purchasing managers’ index rose to 50.4 from 49.6 in May (the first time the index had slipped below 50 since June 2016). Output increased to 50.6 (from 50.2 in May), while new orders also rose (a number higher than 50 indicates expansion, while below 50 signals contraction).
The measure, which relies on a smaller sample size than the official government PMI released on 30 June, compares favourably with the latter, which rose to 51.7 in June, beating all economist estimates in a
Bloomberg survey.
“Operating conditions have now strengthened in nine of the 10 past months, though the latest improvement was only slight,” Caixin and Markit said in a statement.
“Helping to lift the headline PMI was faster growth in new order books. Though only marginal, the latest increase in new orders was the quickest seen for three months.”