BEIJING: China’s manufacturing sector maintained stable operations in June, signalling consistent economic conditions with some improvement in microeconomic activity amid easing pressures on raw material prices.

According to China Central Television (CCTV) the Manufacturing Purchasing Managers’ Index (PMI) held unchanged at 49.5 percent in June, as reported by the China Federation of Logistics and Purchasing and the National Bureau of Statistics Service Survey Center on Sunday.

Production saw a steady increase, with the production index standing at 50.6 percent, maintaining expansion above the 50 percent-mark and indicating sustained growth momentum in China’s manufacturing activities.

After two months of rapid increase, the rise in raw material prices decelerated significantly in June. The raw material purchasing price index dropped to 51.7 percent, down 5.2 percentage points from May.

Survey data showed that 43.7 percent of manufacturing firms cited high raw material costs, down 1.2 percentage points fr
om the previous month.

“The index of purchase prices has shown a significant decline, indicating a significant easing of overall production and operational cost pressures. Therefore, the PMI for June reflects a stable and improving trend in China’s economic performance,” said Cai Jin, Vice President, China Federation of Logistics and Purchasing.

The PMI of large enterprises stayed above 50 percent for 14 consecutive months, with the production index exceeding 52 percent for four months in a row, underscoring continued growth momentum.

Meanwhile, small and medium-sized enterprises (SMEs) stabilized operations, with SMEs seeing a nearly 2-percent increase in new orders, reflecting improved market demand.

Source: Emirates News Agency