The Chinese government’s purchasing managers’ index (PMI) for manufacturing — which mainly covers larger businesses and state-owned companies — rose to 50.2 in June, the first time it has crossed the 50 mark since February, according to the National Bureau of Statistics. A reading above 50 indicates that activity is increasing.
Meanwhile, the official non-manufacturing PMI, which includes construction and services industries, jumped to 54.7 in June, compared with 47.8 in May. It was also the first time the index has moved back into expansion territory in four months, and its strongest reading since May 2021.
“The official PMIs point to a surprisingly rapid recovery in services activity this month after virus restrictions were mostly lifted,” said Julian Evans-Pritchard, senior China economist for Capital Economics.