China's improving June PMIs point to stronger economic momentum

China's manufacturing purchasing managers' index (PMI) rose from 50 in May to 50.3 in June, returning to expansion territory and marking its second-highest reading this year, according to the National Bureau of Statistics (NBS). 

The data suggested the overall level of economic activity picked up this month, NBS statistician Huo Lihui said.

Demand and supply expanded in tandem. The manufacturing production index stood at 51.4, up from 51.2 in May, indicating accelerated expansion of production activities.

The high‑tech manufacturing sector continued to improve. The PMI for high‑tech manufacturing was 53.5, up from 52.9 last month and significantly outperforming the overall manufacturing sector. The development of high‑end manufacturing continued to gain momentum, with its leading role further strengthened.

Market expectations picked up. The index for production and business operation expectations in the manufacturing sector climbed from 53.9 in May to 54.3 in June, signalling a modest rebound in business confidence.

Meanwhile, the non-manufacturing PMI covering the construction and service sectors came in at 50.2 in June, up from 50.1 in May, indicating a slight recovery in the non‑manufacturing sector's performance. 

The expansion of the services sector accelerated, with the services business activity index reaching 50.4, showing an improvement in its activity level.

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

(With input from Xinhua)