Chinese factory managers have expressed a mixed outlook for the economy in June, with steady growth but little momentum. The official PMI held at 49.5, indicating no expansion, while the private-sector Caixin survey showed optimism with a slight increase to 51.8, the fastest in two years.
New export orders declined, possibly due to increased tariffs from the EU and US on electric vehicle imports. Despite efforts to boost the property sector, concerns over intense competition and uncertain market conditions have impacted purchasing manager confidence.
The PMIs suggest a slight loss of recovery momentum, with the high-tech manufacturing sector showing growth with a focus on upgrading factories and equipment. Chinese leader Xi Jinping’s priority on advanced industries is set to be discussed at an upcoming Communist Party meeting.
The party plans to unveil new reforms to steer the economy forward. This data illustrates the need for continued efforts to stabilize and drive growth in the world’s second-largest economy.
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