China's manufacturing sector shrinks again, pointing to fragile economic recovery
(MENAFN) China's factory activity declined for the second consecutive month in June, underscoring the nation's fragile economic recovery as a significant political meeting approaches, which is expected to emphasize deeper reforms. According to data from the National Bureau of Statistics, the manufacturing Purchasing Managers' Index (PMI), a key measure of industrial activity, remained unchanged from May at 49.5. A PMI reading below 50 indicates a contraction, while a reading above 50 suggests expansion.
This decline comes as decision-makers prepare to convene in Beijing in mid-July for the third plenary session of the 20th Central Committee of the Communist Party of China. The session will focus on bolstering the country's economic recovery, particularly following the disruptions caused by the Covid-19 pandemic. The continued contraction in the manufacturing sector is a troubling indicator for the world's second-largest economy, which has been struggling to regain its momentum since late 2022, when Beijing ended stringent Covid-19 restrictions that had severely impacted economic growth.
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