China’s factory activity is expected to have returned to growth in June, albeit by a small margin, according to a Reuters poll of 23 economists. The official purchasing managers’ index (PMI) is forecast to rise to 50.1 from May’s 50.0, just above the 50-point threshold that separates growth from contraction.
Export Demand Drives Growth
A surge in global investment in artificial intelligence has helped China, the world’s top manufacturer, offset the export hit many had expected from the Middle East turmoil. However, signs are emerging that stockpiling linked to higher energy costs is fading, with prices rising and overseas buyers starting to run down inventories.
Domestic demand, meanwhile, remains sluggish. Separate industrial profits data released on Saturday showed upstream sectors and firms in the computer industry recording sharp rises, while downstream manufacturers remained under pressure as a protracted property crisis continues to weigh on spending in the $20 trillion economy.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
