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China's June PMI at Six-month High

  • Tuesday, July 1, 2014
  • Source:ferro-alloys.com

  • Keywords:economy,PMI,index
[Fellow]Growth in China's manufacturing sector accelerated to a six-month high in June, registering a strong end to the second quarter and an encouraging sign that the economy is further stabilizing.

[Ferro-alloys.com] Growth in China's manufacturing sector accelerated to a six-month high in June, registering a strong end to the second quarter and an encouraging sign that the economy is further stabilizing. 

The purchasing managers' index (PMI) rose to 51 in June, up from 50.8 in May and the highest since December 2013, according to data released on Tuesday by the National Bureau of Statistics and the China Federation of Logistics and Purchasing. 

A reading above 50 indicates expansion, while a reading below 50 reflects contraction. 

This is also the fourth monthly uptick of the PMI, a widely watched indicator for the health of the world's second largest economy, which registered a weak start in 2014 and stirred much market concern. 

China's economic growth slipped to 7.4 percent in the January-March period, the lowest quarterly expansion since the third quarter of 2012, but continuous recovery in key indicators in recent months provided evidence that the economy may have turned the corner. 

Apart from the PMI, latest data showed industrial businesses saw their profits rise by 9.8 percent from a year ago in the first five months of 2014. China's exports also picked up in May by a 7-percent year-on-year increase, reversing weak performances in previous months. 

"The continuous rises in PMI indicate that a trend of stable economic growth has generally established," said Zhang Liqun, a researcher at the Development Research Center of the State Council. "The policy measures aimed to stabilize growth have taken effects," he added. 

  • [Editor:Yueleilei]

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