China manufacturing activity grows more than expected in June- Caixin PMI
2024.06.30 22:00
Investing.com– Chinese manufacturing activity grew more than expected in June, private purchasing managers index data showed on Monday, indicating that some aspects of the world’s second-largest economy still remained strong.
The rose 51.8 in June, compared to expectations for a reading of 51.5, and the prior month’s reading of 51.7.
The reading contrasts with government released on Sunday, which showed China’s manufacturing sector shrank for a second consecutive month in June. A reading below 50 indicates contraction.
But the Caixin data differs from the government survey, especially in the scope of companies covered. The Caixin survey covers smaller, private businesses in southern China, while the official survey focuses more on larger, state-run businesses in the north.
The Caixin PMI also covers a smaller pool of Chinese businesses than the official reading. Investors usually use both surveys to get a broader picture of the Chinese economy.
Monday’s data showed an improvement in both onshore and offshore demand for Chinese output. But manufacturers were seen growing more cautious over the future, as other economic readings painted a dour picture of China.
“The Caixin Manufacturing PMI has been in expansionary territory for eight consecutive months. Despite this, insufficient market confidence and effective demand remain key challenges,” Wang Zhe, Senior Economist at Caixin Insight Group said in a note.
