For the second consecutive month, factory activity in China has declined in June, presenting challenges for the world’s second-largest economy as it prepares for the upcoming third plenum next month. The official manufacturing purchasing managers’ index (PMI) remained at 49.5 in June, the same as May, according to the National Bureau of Statistics. This reading is below 50, indicating a contraction in activity, while above 50 suggests expansion.
On the other hand, the non-manufacturing PMI, which measures sentiment in the service and construction sectors, fell to 50.5 in June, down from 51.1 in May. Despite this drop, the non-manufacturing sector has been in expansion territory for the past six months. Meanwhile, the new manufacturing export order subindex remained unchanged at 48.3 in June.
The third plenum, where top Communist Party officials will gather in Beijing in two weeks, is highly anticipated and expected to unveil major economic strategies for the next five to ten years. This delayed meeting will provide crucial insight into the direction of China’s economy and its future prospects.
