China’s factory activity expanded in June, driven by demand for artificial intelligence hardware, according to an official survey. The official manufacturing purchasing managers index (PMI) rose to 50.3 from 50 in May, beating economists’ expectations.
Economic Growth
The sub-index for new orders climbed to 51.2 in June from 49.9 in May, and the sub-index on production also expanded to 51.4 from 51.2. This growth is heavily dependent on exports and AI-related tech, according to Julian Evans-Pritchard, head of China economics at Capital Economics.
Some economists cautioned that Chinese consumers have remained cautious after a years-long property sector downturn and domestic demand is still sluggish. Further policy support from the Chinese government this year to help boost domestic consumption and investment would be beneficial, said Lynn Song, chief economist for Greater China at ING Bank.
Original reporting: KTBS 3 (Shreveport) — read the source article.
