The purchasing managers' index (PMI) for China's manufacturing sector rose to 50.3 in June, up 0.3 percentage points from the previous month, marking expansion for the fourth consecutive month, official data showed Tuesday.
A reading above 50 indicates expansion, while one below 50 reflects contraction.
Key sub-indices showed both production and demand expanded at a faster pace. The production index stood at 51.4 percent, up 0.2 percentage points from May, while the new orders index returned to the expansionary zone at 51.2 percent, up 1.3 percentage points, according to data jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP).
Amid easing global trade tensions, new export orders also picked up and moved back into expansion.
"For industries such as agricultural and sideline food processing, special equipment, and computer and electronic equipment, both production and new orders indices were above 54 percent, indicating strong supply and demand," said Huo Lihui, a chief statistician at the NBS.
Large enterprises continued to expand, recording a PMI of 50.7 percent. Medium-sized businesses saw a notable rebound, with their PMI climbing to 50.5 percent, up 1.9 points from May. Meanwhile, the percentage of manufacturers citing high raw material costs dropped to 32.3 percent, down by 0.8 percentage points, marking a decline for the second consecutive month.
The second-quarter average PMI reached 50.2 percent, returning to growth territory after five quarters in contraction.
"The manufacturing PMI for June shows China's manufacturing sector remains stable and is improving, with supply and demand expanding in tandem, the structure continuing to improve and optimize, and the foundation for high-quality growth becoming increasingly robust," said He Hui, vice president of the CFLP.
China's manufacturing PMI rises to 50.3 pct in June
