China’s manufacturing activity eased in June as export demand weakened and manufacturers grappled with supply constraints, a survey shows
BEIJING – China’s manufacturing activity eased in June as export demand weakened and producers faced supply constraints, a survey showed on Wednesday.
The monthly Purchasing Managers’ Index, released by the National Statistics Agency and an industry group, fell to 50.9 on a 100-point scale from 51.0 in May, with numbers above 50 indicating an increase in activity.
Measures of new export orders, production and factory gate prices declined.
“The latest surveys show growth has moderated this month,” Julian Evans-Pritchard and Sheena Yu of Capital Economics said in a report. Supply constraints “continued to deter production in the manufacturing sector.”
“Companies still expect to be cautious,” economist Zhang Liqun said in a statement issued by the China Federation of Logistics and Purchasing to accompany the PMI readings.
The index of production fell 0.8 points to 51.9 from May. New export orders fell by a similar margin to a one-year low of 48.1. This was offset by strong domestic demand, which raised the measure of new orders by 0.2 points to 51.5.