Posted on 01 Aug 2023
China's Purchasing Managers' Index (PMI) for the country's manufacturing industry climbed for the second month by another marginal 0.3 index point to record 49.3 in July, continuing its stay in the contraction territory for the fourth consecutive month, according to the latest release by the National Bureau of Statistics (NBS) on July 31.
The overall performance of China's manufacturing industry improved further in July, commented NBS senior statistician Zhao Qinghe, as 10 out of the 21 manufacturing sectors under NBS' survey lied in the expansion zone this month, two more than the prior month.
Nevertheless, some surveyed firms faced a decline in overseas orders they received in July, driven by the continuous contraction in the manufacturing industries of the world's major economies, Zhao added.
This month, supply in the industry remained expanded with the production sub-index nudging down by 0.1 point on month to 50.2. As for demand, the sub-index for new orders was read at 49.5, up by 0.9 point on month though still in contraction for the fourth month, the NBS data showed.
The pricing indices of both raw materials procurement and finished products ex-works climbed for the second month in July, with the former settling at 52.4 after the notable on-month gain of 7.4 points, and the latter up 4.7 points from June to 48.6. Particularly, the ferrous smelting and fabrication sectors saw their index of raw materials procurement grow to above 60 this month.
Regarding the recovery in performance among manufacturers of different scales, Zhao highlighted that small-sized firms' PMI reversed up from the prior four months of falls by 1 point on month to log 47.4. Meanwhile, PMI among medium-sized firms reached 49 after the minuscule on-month rise of 0.1 point, and large-sized firms' PMI stayed flat from June at 50.3.
In July, the sentiment index for the manufacturing industry's production and operational activity was 1.7 points higher on month at 55.1, reflecting the enhanced confidence among manufacturers after the introduction of a series of policies aimed at boosting domestic demand, according to Zhao.
On the other hand, the PMI for China's non-manufacturing sector fell by 1.3 points on month to 51.5, according to the NBS data.
Specifically, the sub-index of business activities in the domestic construction sector dropped by 4.5 points on month to 51.2, as work at construction sites has slowed down recently due to high temperatures and rainy weather across the country.
Source:Mysteel Global
