China says its factory activity expanded in June – CNBC

China on Tuesday said production activity broadened in June with the main Purchasing Managers Index being available in at 50.9. Economic experts polled by Reuters had expected the official manufacturing PMI number to come in at 50.4. PMI readings above 50 suggest expansion, while those listed below that level signal contraction.In May, official manufacturing PMI came in at 50.6, according to the National Bureau of Statistics. PMI readings are sequential.The bureau said in its announcement of the PMI reading that supply and demand are starting to get, with the index for new orders increasing for 2 straight months, according to a CNBC translation. Much better readings in both the import and export indices are likewise assisting, as major economies reopen.However, uncertainties remain, the bureau cautioned, adding that the pandemic has not been successfully managed overseas.Data showed the index for brand-new export orders was still in contractionary territory, even though the reading enhanced, being available in at 42.6 for the month of June from 35.3 in May.Chinas production activity has been struck by shocks on both the supply and demand fronts due to massive lockdowns in many parts of the world focused on consisting of the coronavirus pandemic. The virus first emerged late last year in the main Chinese city of Wuhan.While Chinese factories dealt with issues fulfilling orders early in the pandemic, they are now faced with a demand depression worldwide as the variety of contaminated individuals passed the 10 million limit, according to Johns Hopkins University.The main services PMI meanwhile came in at 54.4 in June from 53.6 in May.” These increasing PMIs suggest Chinas recovery is still on track, but the momentum could lose some steam in coming months,” Nomura economic experts wrote in a note after the PMI information release.A revival of brand-new coronavirus cases in Beijing and some surrounding cities has dealt another blow to the domestic services sector, with restored limits on social activities moistening the speed of healing. That was apparent from the almost 69% drop in tourism revenue during the three-day Dragon Boat Festival that officially ended Saturday.” The Dragon Boat Festival holiday data suggest there was no clear healing in the tourism sector between end-April and end-June,” added the Nomura economists.Another set of factory information will be launched on Wednesday by Caixin and IHS Markit. This private survey includes a larger mix of little- and medium-sized firms. In contrast, the main PMI study usually polls a large percentage of industries and state-owned business.– CNBCs Evelyn Cheng added to this report