China’s manufacturing activity expanded at its fastest pace in 13 months in June, according to a private sector poll released on Friday. The surge in output was fueled by the lifting of COVID lockdowns, which drove manufacturers rushing to meet growing demands.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 51.7 in June, showing the first expansion in four months, up from a reading of 48.1 in May, and was above Reuters polled analysts’ expectations of 50.1.
PMI readings are sequential and show month-to-month expansion or contraction, with the 50-point threshold separating growth from contraction.
According to Reuters, the recovery shown by the Caixin survey, which concentrated on more export-oriented and small businesses in coastal regions, was more convincing than data from an official study.
Economic activity in China has sped up in June as a result of the lifting of many Covid lockdowns and the gradual implementation of a set of stabilization measures proposed by the State Council in late May.