Factory activity in China expanded in June for the first time in four months as the country’s manufacturing sector emerged from COVID lockdowns.
China’s National Bureau of Statistics said the manufacturing purchasing managers’ index (PMI) rose in June to 50.2 from 49.6 in May.
A number above 50 in the survey of manufacturers indicates expansion.
The index dipped below 50 in March and hit two-year low of 47.4 in April.
The production sub-index reached 52.8, the highest since March 2021.
Despite the increase, some are worried about soft growth.
“Even though the manufacturing sector continued to recover this month, 49.3% of the companies reported orders were insufficient”
Zhu Hong, senior statistician at NBS speaking with Reuters said, “Even though the manufacturing sector continued to recover this month, 49.3% of the companies reported orders were insufficient.”
“Soft market demand is still the main problem facing the manufacturing industry,” he said.
