China’s official manufacturing PMI declined for the second month in a row

China’s official manufacturing Purchasing Managers’ Index (PMI), published by the National Bureau of Statistics, dropped slightly to 50.9 in June, marking the second month of decline, as manufacturers deal with rising raw material costs. It still stays well above the benchmark 50 and signals expansion. The official survey focuses on large and state-owned manufacturers in China.

The expansion of China’s services industry also slowed down in June, as the official PMI for the services industry declined to 52.3 in June from 54.3 in May. The outlook for the recovery of the services sector, however, remains quite optimistic, as the vaccine rollouts gather speed.

Further data and analysis on China’s economy are available on the CEIC China Economy in a Snapshot – Q2 2021 report.