China’s factory activity returned to expansion in June, driven by strong high-tech manufacturing exports linked to the AI boom, even as shipments of other goods remained weak alongside subdued domestic demand.
Manufacturing PMI Rises
The official manufacturing purchasing managers’ index (PMI) rose to 50.3 in June from 50.0 in May, beating the forecast in a Reuters poll of economists and above the 50-mark separating growth from contraction, according to a survey by the National Bureau of Statistics (NBS).
The non-manufacturing PMI, which includes services and construction, improved to 50.2 versus 50.1 in May, while the composite PMI came in at 50.6 compared with 50.5 a month earlier.
Weakness in the property market, employment and consumer spending continues to dampen growth, leaving China reliant on global demand to absorb goods produced by its industrial sector.
There is enormous international demand for semiconductors powering data centres and advanced electronics, playing to China’s manufacturing strengths.
Conditions are no better on the home front, with retail sales for May falling for the first time in over three years, according to the most recent data, and new home prices declining at a faster pace.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
