Jakarta, CNBC Indonesia – Hilal economic revival of the Bamboo Curtain country increasingly visible. The latest data releases show that both China’s manufacturing and non-manufacturing sectors are in expansionary mode.
China’s national statistics bureau (NBS) reported its manufacturing purchasing managers’ index (PMI) in July at 51.1. This figure improved from last month which was at 50.9.
China’s manufacturing sector continued to record expansion after experiencing a deep contraction in February. At that time China was being wracked by an outbreak caused by the corona virus.
But as time went by and China was slowly able to tame the dangerous pathogen, economic activity that had been inactive began to squirm again.
July manufacturing PMI figures prove that China is really on the path to economic recovery. This figure is even higher than the consensus that was compiled by Bloomberg at 50.8.
The sub-index for production rose 0.1 points to 54 in July. New orders rose 0.3 points to 51.7, up for three consecutive months. While the sub-index measuring new export orders rose 5.8 points to 48.4.
In June, industrial company profits also increased by 11.5% (yoy) from a 6.0% increase in May. However, in the first six months of this year profits still decreased by 12.8%.
On the other hand factory owners still do not expect to employ significantly more staff in the coming months. This is reflected in the employment metrics at 49.3 for July, slightly higher than 49.1 June.
Turning to the non-manufacturing sector, China’s July non-manufacturing PMI figure was at 54.2 lower by 0.2 points from the previous month at 54.4. With this data the Chinese composite PMI as a combination of the two indices stands at 54.1 in July. Better than the previous month’s position at 53.4.
China’s economy in the first quarter of this year recorded the deepest contraction since the 1970s. Panda’s GDP has contracted 6.8% in the first three months of this year.
But China’s success in controlling the outbreak in its country made the economy able to rise and grow in positive territory in the second quarter by 3.2%.
“Through planning to combine pandemic control and development policy, China’s economic climate continues to recover, and business operations continue to improve,” Zhao Qinghe, senior statistician at the National Statistics Bureau, told the South China Morning Post (SCMP).
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