Free Trial

Surveys show Chinese economy growing but at modest pace

Chinese riding bicycle pass by a local business building the in background in Beijing, China, Friday, June 28, 2024. Surveys of Chinese factory managers showed a mixed outlook for the world's second-largest economy in June, with growth steady but not picking up much steam. (AP Photo/Vincent Thian)
Remove Ads

BANGKOK (AP) — Surveys of Chinese factory managers showed a mixed outlook for the world's second-largest economy in June, with growth steady but not picking up much steam.

The China Federation of Logistics and Purchasing's official purchasing managers index, or PMI, remained at 49.5, the same as in May, on a scale up to 100 where 50 marks the cut off for expansion.

“From the perspective of output, China’s economy is maintaining expansion, but the momentum of recovery still needs to be consolidated,” the official Xinhua News Agency cited Zhao Qinghe, senior statistician for the National Bureau of Statistics, as saying.

The PMI for new export orders slipped to 49.4 from 49.6, perhaps reflecting announcements by the European Union and United States of plans to increase their tariffs on imports of electric vehicles from China.

A private-sector survey released Monday by the financial media group Caixin was more optimistic, edging up to 51.8 from 51.7 in the previous month. That was the fastest expansion of factory output in two years, it said. Analysts had forecast that it would fall.

But while sentiment was positive, the level of confidence among purchasing managers fell to the lowest in over four-and-a-half years due to worries over intense competition and uncertain market conditions, Caixin said.

The surveys offered scant insight into whether various measures to boost the property sector, such as cutting mortgage interest rates and down payments, have had much impact on an industrywide slump that followed a crackdown on excessive borrowing by developers.

“The PMIs for June were mixed but on balance suggest that the recovery lost some momentum last month,” Capital Economics said in a report.

The official PMI reading for high-tech manufacturing rose to 52.3 in June from 50.7 in May, reflecting the government's drive to boost investment in upgrading factories and equipment in new industries such as computer chip and electric vehicles.

“This shows that the transformation and upgrading of China’s manufacturing industry has continued to advance,” Zhao was quoted as saying.

Chinese leader Xi Jinping has made growth of such advanced industries a top priority, a theme likely to dominate an upcoming meeting of top officials of the ruling Communist Party when they meet later in the month.

Xinhua said in a separate report that during the meeting the party would disclose a new round of “deep and comprehensive reforms.”

Such measures will “chart the course forward for the world’s second largest economy,” it said.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

20 High-Yield Dividend Stocks that Could Ruin Your Retirement Cover

Almost everyone loves strong dividend-paying stocks, but high yields can signal danger. Discover 20 high-yield dividend stocks paying an unsustainably large percentage of their earnings. Enter your email to get this report and avoid a high-yield dividend trap.

Get This Free Report
Like this article? Share it with a colleague.
Remove Ads

Featured Articles and Offers

Recent Videos

Trump Tariffs Tumble the Stock Market—Here’s How to Protect Your Money
Donald Trump Owns These 7 Stocks, Should You?
 5 Stocks to BUY NOW in April 2025

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines

Remove Ads