Although the Manufacturing Industry Purchasing Managers Index (PMI), announced by China’s National Bureau of Statistics (UIB), rose to 49 in June with an increase of 0.2 points compared to the previous month, it could not exceed the contraction threshold.
Manufacturing PMI fell below the growth threshold again in the last 3 months, after the rise in the first three months of 2023, when signs of post-Kovid-19 recovery were seen.
In the manufacturing industry, the new orders sub-index increased from 48.3 to 48.6 percent, while the new export orders sub-index decreased from 47.2 to 46.4 percent.
The weak momentum in manufacturing indicates that the fragility of China’s recovery after the Kovid-19 epidemic, whose economy is largely based on this sector, continues.
Non-manufacturing PMI, on the other hand, fell 1.3 points to 53.2, although it remained above the growth threshold. The index has been showing a downward trend for the last 3 months.
In non-manufacturing sectors, the services sub-index fell from 53.8 to 52.8, and the construction sub-index fell from 58.2 to 55.7.
Values above 50 in PMI indices indicate an increase in economic activities, undervalues indicate a decrease.
After the Kovid-19 restrictions, which disrupted economic activities in China, were lifted in December 2022, signs of recovery were seen in the economy with the new year.
Manufacturing and non-manufacturing PMI indices have been above the growth threshold since January, and the country’s economy grew by 4.5 percent in the first quarter.