China’s manufacturing PMI in June 2022 was 50.2%

I. Operation of China’s Manufacturing Purchasing Managers Index

In June, the Manufacturing Purchasing Managers Index (PMI) was 50.2%, up 0.6 percentage points from the previous month, returning to above the critical point, and the manufacturing industry resumed expansion.

In terms of enterprise scale, the PMI of large enterprises was 50.2%, a decrease of 0.8 percentage points from the previous month, and was still higher than the threshold; the PMI of medium-sized enterprises was 51.3%, an increase of 1.9 percentage points from the previous month, returning to above the threshold; The PMI of small enterprises was 48.6%, up 1.9 percentage points from the previous month, and still below the threshold.

From the perspective of sub-indices, among the five sub-indices that make up the manufacturing PMI, the production index, new order index and supplier delivery time index are all higher than the critical point, while the raw material inventory index and employment index are both below the critical point .

The production index was 52.8%, up 3.1 percentage points from the previous month, returning to above the critical point, indicating that the recovery of manufacturing production has accelerated.

The new orders index was 50.4%, up 2.2 percentage points from the previous month, returning to above the threshold, indicating that the manufacturing market demand has improved.

The raw material inventory index was 48.1%, an increase of 0.2 percentage points from the previous month, indicating that the decline in the inventory of major raw materials in the manufacturing industry continued to narrow.

The employment index was 48.7%, an increase of 1.1 percentage points from the previous month, indicating that the employment prosperity level of manufacturing enterprises has rebounded for two consecutive months.

The supplier delivery time index was 51.3%, up 7.2 percentage points from the previous month, returning to above the critical point, indicating that the delivery time of manufacturing raw material suppliers was significantly faster than the previous month.

II. Operation of China’s Non-Manufacturing Purchasing Managers Index

In June, the non-manufacturing business activity index was 54.7%, up 6.9 percentage points from the previous month, returning to the expansion range. The non-manufacturing business activity level has rebounded significantly for two consecutive months.

In view of different industries, the business activity index of the construction industry was 56.6%, an increase of 4.4 percentage points from the previous month. The service industry business activity index was 54.3 percent, up 7.2 percentage points from the previous month. From the perspective of the industry, the business activity index of retail, railway transportation, road transportation, air transportation, postal service, monetary and financial services, capital market services and other industries is above 55.0%; the business activity index of real estate, residential services and other industries continues to be lower than the critical point.

The new orders index was 53.2%, up 9.1 percentage points from the previous month, returning to above the critical point, indicating that the non-manufacturing market demand is picking up. In view of different industries, the new orders index of the construction industry was 50.8%, an increase of 4.4 percentage points from the previous month; the new orders index of the service industry was 53.7%, an increase of 10.0 percentage points from the previous month.

The input price index was 52.6%, an increase of 0.1 percentage points from the previous month, and was higher than the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises for business activities increased from the previous month. In view of different industries, the input price index of the construction industry was 48.7 percent, down 3.7 percentage points from the previous month; the input price index of the service industry was 53.3 percent, up 0.8 percentage points from the previous month.

The sales price index was 49.6%, up 0.2 percentage points from the previous month, and lower than the threshold, indicating that the decline in the overall level of non-manufacturing sales prices narrowed. In view of different industries, the sales price index of the construction industry was 50.3 percent, a decrease of 1.2 percentage points from the previous month; the sales price index of the service industry was 49.5 percent, an increase of 0.5 percentage points from the previous month.

The employment index was 46.9%, an increase of 1.6 percentage points from the previous month, indicating that the employment prosperity of non-manufacturing enterprises has improved. In view of different industries, the employment index of construction industry was 48.3%, an increase of 2.8 percentage points from the previous month; the employment index of the service industry was 46.6%, an increase of 1.3 percentage points from the previous month.

The business activity expectation index was 61.3%, an increase of 5.7 percentage points from the previous month and higher than the threshold, indicating that non-manufacturing enterprises’ confidence in the recent industry recovery and development has increased significantly. In view of different industries, the business activity expectation index of the construction industry was 63.1%, an increase of 5.2 percentage points from the previous month; the business activity expectation index of the service industry was 61.0%, an increase of 5.8 percentage points from the previous month.

III. China CompositePMIOperation of Output Index

In June, the comprehensive PMI output index was 54.1%, an increase of 5.7 percentage points from the previous month, indicating that the production and operation of Chinese enterprises generally showed a recovery expansion.