China’s manufacturing activity logged robust growth in June, completing the strongest quarter since the fourth quarter of 2020, survey data released by S&P Global showed on Wednesday.
The agency’s China manufacturing Purchasing Managers’ Index hit 51.7 in June, down from 51.8 in May.
Although the score fell to a three-month low in June, it remained above the long-run survey trend of 50.8 since 2004. Moreover, the average reading for the second quarter was 51.9, the strongest for any quarter since the fourth quarter of 2020.
The volume of new orders increased for the thirteenth month running in June, and marked the joint-longest sequence. However, new export business fell for a second straight month.
Manufacturing production increased again in June, underpinned by higher orders. Manufacturers boosted employment for the first time in three months in June. The rate of job creation was the strongest since August 2023.
Despite higher staff levels, the level of backlogged work increased for the fifth month. Manufacturers were able to raise their inventories of finished goods.
The survey showed slowdown in inflationary pressures. Average input prices grew for the twelfth successive month in June, the longest sequence of inflation since the first half of 2022. However, the rate of inflation eased to the lowest since January.
Output price inflation edged up slightly since May. Charges increased for six straight months, marking the longest sequence since 2021.
Finally, the survey showed that manufacturing production outlook remained positive in June. However, the degree of optimism was the softest since January.