MNI DATA BRIEF: China June PMI 50.9; Production Expansion Slows

China's Purchasing Managers' Index (PMI) reads at 50.9 in June, slightly down from 51.0 registered in May, marking the 16th straight month the index staying above the breakeven 50.0 level, data from the National Bureau of Statistics on Wednesday showed.

The reading of 50.9, though edging down from the previous report, was still a solid indication of the steady expansion of China's manufacturing. The production sub-index fell 0.8 percentage point to 51.9, impacted by the shortage of computer chips, coal and power supply. The new-order sub-index picked up 0.2 pp to 51.5, reflecting an increase in demand. New export orders slid 0.2 pps to 48.1, while imports fell into the contraction zone at 49.7.

The non-manufacturing gauge slowed down to 53.5 from last 55.2, impacted by a rebound in COVID-19 cases. The online consumption related industries, boosted by mid-year commercial promotion, including postal express, telecommunications and IT services were all able to maintain a rapid growth, the NBS said.