[ad_1]
The Chinese manufacturing sector’s purchasing managers’ index (PMI) was 49 in July, down from 50.2 in June, according to the National Bureau of Statistics (NBS), whose senior statistician Zhao Qinghe said negative factors, including the traditional production off-peak period, insufficient market demand and weakened performances of energy-intensive sectors, affected the industry.
A reading above 50 indicates expansion, while a reading below reflects contraction. NBS data showed among 21 surveyed manufacturing sectors, 10 sectors were in expansion territory in July.
China’s manufacturing sector purchasing managers’ index was 49 in July, down from 50.2 in June, according to the National Bureau of Statistics, whose senior statistician Zhao Qinghe said negative factors, including the traditional production off-peak period, insufficient market demand and weakened performances of energy-intensive sectors, hit the industry.
The sub-index measuring purchase prices of major raw materials retreated 11.6 percentage points from last month to 40.4. The sub-index for prices at the factory gate was 40.1, down 6.2 percentage points from June.
Zhao noted that the sharp price fluctuation of the bulk commodities in the international market has dragged down the enterprises’ purchase demands, according to official Chinese media.
The sub-index for production and operation activity expectation too went down by 3.2 percentage points from last month to 52, but has remained in the expansion area.
In July, the sub-index for production stood at 49.8, down 3 percentage points from the previous month, data showed. The new order sub-index decreased by 1.9 percentage points to 48.5, indicating shrinking demand in the manufacturing market.
“Insufficient market demand is the major obstacle that the manufacturing firms are facing, and the recovery foundation of the industry still needs to be consolidated,” Zhao was quoted as saying.
Meanwhile, experts said the nation is on track to witness a steady rebound in the second half of the year despite downward pressures from a gloomy global economic outlook and uncertainties.
The country’s supply chain will experience less disruption and policy stimulus will play a major role in boosting growth in the second half, they reportedly said.
The headline seasonally adjusted PMI, a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy, slipped from 51.7 in June to 50.4 in July, to signal a back-to-back monthly improvement in business conditions, according to S&P Global.
Though mild, the rate at which input inventories increased was the fastest for 20 months in July. Stocks of finished items meanwhile fell slightly, which was linked to the delivery of goods to clients and reluctance among some firms to build up inventories amid subdued client demand.
Manufacturers generally anticipate an expansion of output over the next year amid forecasts of a strong post-pandemic recovery and planned company expansions. However, overall optimism weakened slightly since June due to concerns over COVID-19 and relatively subdued customer demand, S&P Global added.
Fibre2Fashion News Desk (DS)
[ad_2]
Source link
