The official manufacturing purchasing managers’ index (PMI) in China remained in contraction for the second month in a row in June, posing challenges for the country’s economy. The index, which measures sentiment among factory owners, was at 49.5 in June, the same as in May. This reading suggests expansion, while below 50 indicates contraction. On the other hand, the non-manufacturing PMI fell to 50.5 in June from 51.1 in May, indicating expansion territory for the past six months.
These figures come ahead of the upcoming third plenum, where Communist Party officials will gather in Beijing to unveil major economic strategies for the next five to ten years. The delayed third plenum is highly anticipated and will play a crucial role in shaping the future of China’s economy. Despite these challenges, China remains one of the world’s fastest-growing economies and continues to be an important player on the global stage.