China’s Manufacturing and Non- Manufacturing PMI Remained above Critical Point in July

By LIN Huocan

On July 31, the service industry survey center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released the China purchasing manager index, or PMI. In July, the PMI of manufacturing industry was 51.1%, which continued to rise steadily; the non-manufacturing business activity index was 54.2%, which continued to remain above the critical point. The comprehensive PMI output index is 54.1%, which indicates that the overall production and operation of enterprises maintain the momentum of recovery growth.

Experts said that with the effective implementation of the overall pandemic prevention and development policies, China’s economic prosperity continued to recover, and the operating conditions of enterprises continued to improve. At present, China still need to do a good job in expanding domestic demand, effectively activate and release the investment and consumption potential of the domestic market, and push the recovery of China’s economy onto a more stable and solid track.

In July, the PMI of the manufacturing industry was 51.1%, which continued the trend of steady and rising last month, and was above the prosperity and withering line for five consecutive months. Among the 21 industries surveyed, PMI of 17 industries is higher than the critical point, 3 more than that of last month, and continued to boom.

For the 13 sub-indexes, compared with the previous month, 11 indexes such as production index and new order index increased by 0.1% to 5.8%, while the PPI and supplier-delivery time index decreased by 0.2% and 0.1% respectively.

Wen Tao, an expert at China Logistics Information Center, said that as of July, the PMI of the manufacturing industry had been operating at more than 50% for five consecutive months. In particular, the index rebounded to more than 51% in July, indicating an accelerated economic recovery. Judging from the sub-indexes, the trend of economic recovery has been strengthened, import and export continue to maintain the recovery momentum, and consumer goods and new energy industries grow rapidly.

On the whole, the non-manufacturing industry maintained steady and rapid growth, the business operation was stable, the sales price continued to rise, the enterprise expectations remained optimistic, and the positive changes in economic operation were further revealed, which is conducive to the continued economic recovery in the second half of the year.

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