Manufacturing activity in China continued to rebound in June driven by rising domestic demand, adding to evidence that the nation’s economy is recovering from the disruption caused by the Covid-19 pandemic, reported Caixin.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rose to 51.2 from 50.7 in May, a report released Wednesday showed. A number above 50 signals an expansion in activity, while a reading below that indicates a contraction.
The reading, the highest since December, adds to evidence that the economy is recovering from the coronavirus epidemic which led to the lockdown of vast swathes of the economy. Government reports last month showed investment, industrial output and consumption all improving in May from April.
“Since mid-March, China’s economy has staged an impressive comeback, bolstered by pent-up demand, a catch-up in production, a surge in medical product exports and stimulus in both China and other major economies that has bolstered demand for goods made in China,” economists at Nomura International (Hong Kong) Ltd. wrote in a note on Monday. They raised their estimate for year-on-year growth in gross domestic product (GDP) for the second quarter to 2.6% from 1.2%.