PMI Of Manufacturing Industry Rebounded More Than Expected, And Economic Recovery Started Steadily In The Second Half Of The Year

Caixin's purchasing managers' index (PMI) of China's manufacturing industry in July, released on August 3, recorded 52.8, an increase of 1.6 percentage points from June, and jumped to the highest since February 2011. This is basically in line with the official manufacturing trend. The PMI of manufacturing industry released by the National Bureau of Statistics recently recorded 51.1%, 0.2 percentage points higher than that of the previous month, which has been in the expansion range for five consecutive months. The industry pointed out that PMI performance of the two manufacturing industries exceeded market expectations, production and demand continued to warm up, and the economy started well in the second half of the year, which released a positive signal for the sustained economic recovery.

China's manufacturing sector was further improved in July, with a further improvement in the manufacturing sector. At present, output has been expanding for five consecutive months, the highest growth rate in nine and a half years. It is widely expected that output will exceed the current level in the next 12 months. The volume of new business increased steadily, the most significant growth since the beginning of 2011. Senior economist of Caixin think tank said that Caixin China's manufacturing industry continued to maintain an upward trend, reflecting the continuous expansion of the manufacturing industry and the continued recovery of economic prosperity after the outbreak of new crown pneumonia.

The PMI trend of Caixin manufacturing industry is basically consistent with that of the official manufacturing industry. Recently, the National Bureau of Statistics announced that the PMI of the manufacturing industry recorded 51.1% in July, continuing the trend of steady increase in the previous month. Among the 21 industries surveyed, the PMI of 17 industries was higher than the critical point, 3 more than that of the previous month, and the business scope was expanded. From the classification index, the production index, new order index and supplier delivery time index are all higher than the critical point, which indicates that the production volume of the manufacturing industry continues to grow month on month, the market demand gradually warms up, and the delivery time of raw material suppliers continues to accelerate.

Zhao Qinghe, a senior statistician at the service industry survey center of the National Bureau of statistics, said that in order to meet the needs of production, enterprises have increased their purchasing efforts, and the purchasing volume index has rebounded significantly. Demand gradually recovered and the index of new orders picked up for three consecutive months. With the gradual relaxation of isolation and blockade measures in major global economies, the resumption of economic activities, and the implementation of a series of stable foreign trade policies and measures issued by China, the import and export of manufacturing industry has also recovered. In the near future, we are optimistic about the industry.

The industry pointed out that PMI performance of the two manufacturing industries exceeded market expectations, which released a positive signal for the sustained economic recovery in the second half of the year. With the policies such as expanding domestic demand to take effect more quickly, China's economy is expected to continue to recover.

It is worth mentioning that when the national development and Reform Commission held a video conference on the development and reform work in the first half of the year, the national development and Reform Commission stressed that it is necessary to highlight the focus of work, strive to stabilize the economic operation, refine and implement policies and measures to expand domestic demand and promote the formation of a strong domestic market.

"In the second half of the year, with the impact of the domestic epidemic continuing to weaken, the macro-economic policies are fully exerted, and the market expectations are constantly improving, the restrained consumption and investment demand will be released rapidly, and the process of economic recovery will be significantly accelerated." Wang Yiming, former deputy director of the development research center of the State Council, said in an interview with the reporter of economic reference news a few days ago.