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Chinese manufacturing output increased in June

Editorial
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Both the official and the HSBC PMI showed China’s factory output increased in June, with the official PMI indicating the strongest result in six months.

The official PMI, which favours larger, state-run firms, edged up with an overall score of 51.0 for June (up from May’s 50.8).

A result over 50 indicates growth.

The HSBC PMI, weighted towards smaller, privately-owned companies, returned to growth at 50.7 (up from May’s result of 49.4). This was the first time the unofficial PMI has been in growth territory for 2014.

There was also a fall in employment for the eighth month running.

Of the HSBC PMI, the bank’s China economist Hongbin Qu said, “This confirms the trend of stronger demand and faster de-stocking.

"The economy continues to show more signs of recovery, and this momentum will likely continue over the next few months, supported by stronger infrastructure investments.”

Image: wired.com

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