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China's manufacturing activity rises for second month in July

By Zhou Lanxu | chinadaily.com.cn | Updated: 2020-07-31 09:20
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An employee works on a production line manufacturing steel structures at a factory in Huzhou, Zhejiang province, on May 17, 2020. [Photo/Agencies]

China's official purchasing managers' index (PMI) for the manufacturing sector rose to a four-month high in July, indicating that the sector accelerated recovery from the COVID-19 epidemic.

The manufacturing PMI rose for the second consecutive month in July and stood at 51.1, versus 50.9 in June, the National Bureau of Statistics said on Friday.

A reading above 50 indicates expansion, while a reading below reflects contraction. The index has stood above 50 for five months in a row since March.

"China's economic condition continued to recover with business operation improving," Zhao Qinghe, a NBS senior statistician, said.

Production increased in broad-based manner while demand gradually recovered, Zhao said, with the expansion in output and new orders in July both gathering pace from the previous month.

Yet activities of small manufacturers continued to contract this month, while the floods have affected some businesses in terms of transport, storage and other areas, Zhao added.

China's non-manufacturing PMI edged down from the previous month and stood at 54.2 in July. The composite PMI, which covers manufacturing and non-manufacturing activities, edged down to 54.1 from June's 54.2, indicating an overall restorative expansion in economic activities, the NBS said.

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