Factory Activity In China Remains In Contraction, Non-Manufacturing PMI Also Down From May

June was the second consecutive month when factory activity in China remained in contraction as the purchasing managers’ index (PMI) stood at 49.5. PMI less than 50 shows contraction.

The June PMI is the same as that of May. The new manufacturing export order subindex also remained constant at 48.3 in June. This poses challenges to China ahead of next month’s key third plenum.

The non-manufacturing PMI, which still shows expansion, also came down to 50.5 in June from 51.1 in May. However, it remained in expansion territory for the sixth consecutive month.