China Manufacturing Gauge Strengthens on Growing Global Demand
Boosted by a strong service sector, China’s non-manufacturing activity expanded at a faster pace in June, adding to signs of a stabilizing Chinese economy, official data showed Friday.
The June reading beat a median forecast of 51.1 by economists polled earlier by The Wall Street Journal. The official gauge tracks larger and primarily state-owned enterprises.
It was also higher than the previous month’s 51.2 and marked the eleventh month of expansion in a row.
The service sector, which accounted for more than half of the country’s gross domestic product (GDP) past year, saw robust growth in June, with the sub-index coming in at 53.8, up from 53.5 the previous month.
The nonmanufacturing PMI covers services including retail, aviation and software as well as the real-estate and construction sectors.
The new orders subindex for the entire sector also rose to 51.4 from 50.9.
More than 40% of all companies surveyed reported financial stress, the Statistics Bureau said.
Premier Li Keqiang told the World Economic Forum on Tuesday that China is capable of achieving its full-year growth target of 6.5 percent and controlling systemic risks despite challenges. Research house, however, expects current growth resilience to prove to be temporary.