BEIJING (Reuters) – China’s manufacturing activity contracted for a third consecutive month in June, albeit less sharply, an official survey showed on Friday, as pressure mounts on policymakers in Beijing to take support measures to stimulate demand.
According to data from the National Bureau of Statistics (BNS), the official PMI for the manufacturing sector stood at 49.0 in June, in line with consensus after 48.8 in May, remaining below the threshold of 50 which separates contraction and expansion of activity.
Analysts have started to revise down their forecasts for China’s economy for the rest of the year, after industrial production and retail sales fell short of expectations in May, signaling that the post-COVID rebound seen in the first trimester was running out of steam.
The government has set a modest annual growth target for China’s gross domestic product (GDP), around 5%, after disappointing economic growth in 2022.
According to the SNB, the official PMI for services fell in June to 53.2, after 54.50 in May, its lowest level since last December.
The services PMI came in at 52.3, down from 52.9 in May.
(Report Joe Cash; Jean Terzian)
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