China on Tuesday said manufacturing activity expanded in June with the official Purchasing Manager’s Index coming in at 50.9.
Economists polled by Reuters had expected the official manufacturing PMI number to come in at 50.4. PMI readings above 50 indicate expansion, while those below that level signal contraction.
In May, official manufacturing PMI came in at 50.6, according to the National Bureau of Statistics. PMI readings are sequential.
The bureau said in its announcement of the PMI reading that supply and demand are starting to pick up, with the index for new orders rising for two straight months, according to a CNBC translation. Better readings in both the import and export indices are also helping, as major economies reopen.
However, uncertainties remain, the bureau cautioned, adding that the pandemic has not been effectively controlled overseas.
Data showed the index for new export orders was still in contractionary territory, even though the reading improved, coming in at 42.6 for the month of June from 35.3 in May.