China's manufacturing PMI50.9% in June, up from the previous month

At present, in accordance with the deployment of the Central Committee of the Communist Party of China and the State Council, all regions and departments have done a good job of "six stability" and implemented the "six protection" tasks, striving to overcome the adverse effects of the new coronary pneumonia epidemic, and the overall recovery of China's economic operation continues to improve.

According to the National Bureau of Statistics, China's manufacturing purchasing managers' index (PMI) stood at 50.9 in June 2020, up 0.3 percentage points from the previous month.Among the 21 industries surveyed, the PMI of 14 industries was above the critical point, an increase of 5 from the previous month. The manufacturing industry recovered steadily and the fundamentals continued to improve.From the enterprise scale,The PMI for large and medium-sized enterprises was 52.1 per cent and 50.2 per cent, up 0.5 and 1.4 percentage points from the previous month, while the PMI for small enterprises was 48.9 per cent, down 1.9 percentage points from the previous month.

From the classification index,Among the five sub-indices that make up the manufacturing PMI, the production index, the new order index and the supplier delivery time index are all higher than the critical point, and the raw material inventory index and the employee index are all lower than the critical point.the production index was 53.9 percent,An increase of 0.7 percentage points from the previous month, indicating that manufacturing production continued to rebound month-on-month.the new orders index was 51.4 percent,It was 0.5 percentage points higher than the previous month and rebounded for two consecutive months, indicating that demand in the manufacturing market continued to recover. The raw material inventory index was 47.6, up 0.3 percentage points from the previous month, indicating that the decline in the inventory of major raw materials in the manufacturing industry narrowed.The employment index was 49.1 per cent,It was 0.3 percentage points lower than last month, indicating a slight decline in the employment climate of manufacturing enterprises.The supplier delivery time index is 50.5 per cent,Although the same as last month, but higher than the critical point, indicating that the manufacturing raw material suppliers delivery time has accelerated.

According to the interpretation of relevant experts, the following characteristics are mainly presented:First, both ends of supply and demand continue to pick up.The production index and the new orders index rose month-on-month, indicating that manufacturing production continued to pick up month-on-month and market demand continued to recover.Second, the price index has risen.The purchase price index and ex-factory price index of major raw materials were 56.8 per cent and 52.4 per cent, respectively, up 5.2 and 3.7 percentage points from the previous month, both highs for the year.Third, the import and export index has improved.As the world's major economies have restarted their economies, China's manufacturing import and export index rebounded at a low level this month, with the index of new export orders at 42.6 per cent, up 7.3 percentage points from the previous month, and the import index at 47.0 per cent, up 1.7 percentage points from the previous month.Fourth, business confidence is basically stable.Although the expected index of production and business activities fell slightly, it still reached 57.5 per cent, indicating that manufacturing companies are optimistic about the near-term recovery of the market.

Although the PMI index has rebounded this month and the manufacturing industry has recovered steadily, it should also be noted that uncertainties still exist.First, although the import and export index has improved for two consecutive months, it is still below the critical point, the current overseas epidemic has not been effectively controlled, and there are still variables in the external market. Second, the recovery pressure of some industries is still large, and the PMI of textile, textile and clothing and other manufacturing industries continues to be below the critical point. Third, small enterprises have greater difficulties in production and operation, and the proportion of small enterprises reflecting insufficient orders is higher than that of large and medium-sized enterprises.