Reuters: China's Caixin Manufacturing PMI Returns to Expansion Zone, Hits Three-Month High
Reuters, July 1 report, China's June Caixin Manufacturing Purchasing Managers' Index (PMI) rose to 50.4, a significant increase from May's 48.3, marking the first time in three months that it has crossed the threshold of prosperity. Growth in new orders drove production acceleration, with output index reaching its highest level since November 2024. However, new export orders continued to contract for the third consecutive month, and employment continued to shrink, with increased downward pressure on factory prices.
Wang Zhe, senior economist at Caixin Intelligence, said: "Both supply and demand in manufacturing have recovered synchronously, but the external environment remains severe and complex, and the issue of insufficient effective domestic demand has not been fundamentally resolved." Surveys show that due to cost pressures, some small and medium-sized export enterprises have been forced to sell at a loss or cut salaries and positions. Goldman Sachs economists analyzed that the July Political Bureau meeting is unlikely to introduce large-scale stimulus policies, as decision-makers are "basically satisfied" with the current economic performance.
Original article: https://www.toutiao.com/article/1836436373116938/
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