Xinhua
31 Jul 2020, 13:00 GMT+10
Workers of a quartz glass company check quartz tubes at Jinping industrial park of Haizhou District in Lianyungang, east China's Jiangsu Province, June 30, 2020. (Photo by Geng Yuhe/Xinhua)
The better-than-expected PMI figure comes as the epidemic situation in China has become stable and the economy has basically recovered.
These PMI readings point to steady recovery momentum in July despite the floods along the Yangtze River and scattered local COVID-19 cases.
BEIJING, July 31 (Xinhua) -- The purchasing managers' index (PMI) for China's manufacturing sector rose to 51.1 in July from 50.9 in June, the National Bureau of Statistics (NBS) said Friday.
It is the fifth month in a row that the figure remained in the expansion territory. A reading above 50 indicates expansion, while a reading below reflects contraction.
Commenting on the sustained expansion, NBS senior statistician Zhao Qinghe said: "Policies of balancing epidemic control and economic development further yield tangible fruit, as economic vitality continues recovering and enterprises keep registering better operational outcomes."
Zhao cited sub-indices of the manufacturing PMI as evidence of economic recovery across the board.
The sub-index for production edged up 0.1 points to 54 in July. New orders picked up 0.3 points to 51.7, rising for three consecutive months. While the sub-index measuring new export orders gained 5.8 points to 48.4.
"Enterprises stay optimistic about recovery in their industries," Zhao said.
The better-than-expected PMI figure comes as the epidemic situation in China has become stable and the economy has basically recovered.
NBS data released Friday also showed an extensive rebound in non-manufacturing sectors as their PMI came in at 54.2 in July and service suppliers, including those hit especially hard by the epidemic, showed stronger business vitality.
Sectors including railway and aviation transport, postal and express delivery and accommodation all logged busier business activities, with their sub-indexes all standing above 60.
An express delivery company staff checks parcels at an e-commerce business incubator in Lanshan District of Linyi, east China's Shandong Province, May 8, 2020. (Xinhua/Fan Changguo)
These PMI readings point to steady recovery momentum in July despite the floods along the Yangtze River and scattered local COVID-19 cases, according to an emailed research note authored by analysts with the financial services firm Nomura.
"We expect China's official manufacturing PMI to remain at around 51.0 in the coming months," the note said, citing growth headwinds including worsening COVID-19 situations in many parts of the world as cause for caution.
Many problems China faces are long- and medium-term, and resolving such problems is like fighting a protracted war, according to a Thursday meeting of the Political Bureau of the Communist Party of China Central Committee.
Noting that the "protracted-war" assessment has strong implications for policies, Nomura expects the country to make a shift from a "wartime mode" for fighting the COVID-19 outbreak toward meeting structural issues and long-term challenges.
The country wrapped up the first half with GDP growth of 3.2 percent in Q2, after a virus-caused 6.8-percent contraction in the first quarter. A slew of other mid-year economic indicators including consumption, jobs and foreign trade also painted the picture of an economy disentangling from COVID-19 disruptions.
Citing a survey of 67 economists, Bloomberg News said in a recent report that China's growth in the current quarter will be 5.2 percent year on year, faster than the 3.2-percent expansion in the three months to June. ■
Get a daily dose of London Mercury news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to London Mercury.
More InformationLA agencies struggle to sell real estate in slow market
Judge rejects Blue Cross Medicare star rating lawsuit
Japan vs Wales preview, kick-off time, team news & how to follow
Singer Iris Williams who performed for Queen Elizabeth II dies
Surgeon banned by private practice is working for NHS
Jack Hale avoids prison after crashing car into Newgale campsite
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...