Beijing: China’s manufacturing sector has shown signs of gaining momentum, with a number of industries returning to growth and production in high-tech and consumer goods remaining robust, as revealed by official data.
According to Namibia Press Agency, the purchasing managers’ index (PMI) for China’s manufacturing sector rose for the second consecutive month in June, reaching 49.7, up from 49.5 in May and 49 in April, as reported by the National Bureau of Statistics (NBS). Of the 21 industries surveyed, 11 showed expansion this month, an increase from seven in May. Notably, the PMIs for manufacturing of equipment, high-tech products, and consumer goods have consistently remained in the expansion zone for two months, recorded at 51.4, 50.9, and 50.4, respectively.
A PMI above 50 indicates expansion, whereas a reading below 50 suggests contraction. The data also highlighted that the non-manufacturing PMI rose to 50.5 in June, up by 0.2 percentage points from the previous month, while the general PMI increased from 50.4 to 50.7, signaling an improving economic climate.
The construction sector showed increased momentum, and the service sector maintained an upward trend, with sectors like postal services, information technology, and financial services exhibiting high levels of activity.
In light of external uncertainties, China has boosted its policy support to strengthen the economy, effectively driving industrial growth. The value-added output of major industrial enterprises rose by 6.2 percent year on year in May, indicating strong resilience and growth potential within the sector.
National policies promoting industrial equipment upgrades and consumer goods trade-ins have invigorated consumer demand and stimulated production, stated NBS spokesperson Fu Linghui. Additionally, China’s industrial transition efforts, particularly towards high-end, intelligent, and green production, have gained momentum.
High-tech manufacturing, a key element of industrial transformation, witnessed an 8.6 percent year-on-year increase in value-added output in May. The production of new energy vehicles and solar cells surged by 31.7 percent and 27.8 percent, respectively, continuing their rapid growth.
Despite these positive trends, analysts warn of persistent challenges due to global economic uncertainties and low prices impacting industrial recovery. Fu highlighted the importance of fully implementing policies to support industrial development, expanding domestic demand, and fostering new productive forces.
Efforts will be made to optimize the industrial structure by transforming and upgrading traditional sectors to ensure sustained and healthy economic development. China’s economy experienced a 5.4 percent year-on-year growth in the first quarter of 2025, an increase from the 5 percent full-year growth rate recorded in 2024.