MNI DATA IMPACT: China July PMI 51.1 Hits Four-Month High

China's manufacturing Purchasing Manager Index (PMI) rose to a four-month high of 51.1 in July, standing above the breakeven 50 for a fifth month following 50.9 in June. The rise mirrored a continuous recovery in both supply and demand as policies to offset the impact of the epidemic kicked in, according to the latest data from the National Bureau of Statistics released on Friday.

MNI highlights the following key points in the NBS statement:

• The production sub-index edged up 0.1 points to 54.0 from last month, above the breakeven for the fifth month, indicating a general rebound in production.
• The new-order sub-index climbed for the third month to 51.7 from 51.4 in June, reflecting recovering demand in the manufacturing industry.
• The new-export-order sub-index, a leading indicator for China exports, was at 48.4, up 5.8 points from May's 42.6. The new-import-order sub-index also rose 2.1 points to 49.1.
• Non-manufacturing PMI edged down 0.2 points to 54.2 after rising for four months in a row, with the construction industry leading the recovery. The business activities index for residential services and the entertainment sector ended their five-month contractions and rose to 51.1 and 51.9, respectively, up 1.9 and 6.1 points from the previous month, indicating the impact of spending stimulus, the NBS said.