PMI: China economic system has greatest month since Covid lockdowns imposed in March

PMI: China economy has best month since Covid lockdowns imposed in March

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 surveys provide the latest signs of recovery in China’s economy, as the country gradually reopens for business following months of widespread Covid lockdowns.

“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.