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China's June factory activity quickens to three-month high: official PMI

  • Yawen Chen and Ryan Woo

    Reuters

Beijing, China   /   Tue, June 30, 2020   /   08:40 am
China's June factory activity quickens to three-month high: official PMI Slow manufacturing: New buses are seen lined up for export at a port in Lianyungang in east China’s Jiangsu province on Wednesday. Chinese factory activity slowed in October, official data showed on Wednesday, adding to a growing list of bad news for the Asian giant as it struggles to maintain economic momentum in the face of United State tariffs and a weakening yuan. (AFP/-)

China’s factory activity expanded at a faster pace in June, beating expectations, as the economy continues to recover after the government lifted strict lockdowns and ramped up investment, but weak global demand is likely to be a drag on growth.

The official manufacturing Purchasing Manager’s Index (PMI) rose to a three-month high of 50.9 in June from 50.6 in May, above the 50-point mark that separates growth from contraction on a monthly basis. Analysts had expected it to slow to 50.4.

While most of the economy has reopened, many manufacturers are still struggling due to weak overseas orders as global demand falters. Domestic recovery also remains mild and below historic levels, amid renewed worries about a second wave of infections.

“We believe the economy is still far from a full recovery and Beijing cannot afford to reverse its easing stance,” Nomura analysts wrote Monday.