China's factory activity revved up in June after the country lifted the lockdown in Shanghai after the epidemic was contained.
The official Purchasing Managers' Index (PMI) for the manufacturing sector rose to 50.2 in June, up from 49.6 a month earlier, the first time since February that the gauge has risen above the 50 mark that separates expansion from contraction.
With the epidemic gradually under control and a series of stimulus policies implemented, China's economy is recovering at a faster pace in June.
The profitability of exporters in most sectors has improved during the second quarter, according to a survey by the China Council for the Promotion of International Trade in Beijing. Major challenges facing foreign trade enterprises, such as high costs of logistics, have eased, the survey showed.
On June 29, President Xi Jinping pledged to step up macroeconomic policy adjustment, and adopt more forceful measures to deliver the economic and social development goals for the whole year and minimize the impact of Covid-19.
China's central bank on June 29 said that it will build an effective mechanism to provide financial support for the real economy, according to a media report.
While encouraging financial institutions to step up their issuance of loans to the manufacturing industry, the bank will make solid efforts to stabilize industrial and supply chains, according to a quarterly monetary policy implementation meeting of the People's Bank of China.
The official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, rose to 54.7 in June from 47.8 a month earlier, also expanding for the first time since February.
(Writing by Alex Guo Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.