The business activity index of China's non-manufacturing sector Purchasing Managers' Index (PMI) stood at 55.4 percent in June. Although this figure represents a month-on-month decline, it has remained above 50 percent, indicating that non-manufacturing sector economic activities are steadily increasing.
The non-manufacturing sector's business activity index has stood at a high level of over 50 percent for four consecutive months, indicating that the sector's current economic activities are steadily increasing. The production service sector's business activity index stood at 52 percent, down 5.6 percentage points month-on-month.
As the index remained above 50 percent for four consecutive months in the first half of the year, the decline in June reflects the fact that the foundation of recovery in the production service sector is not solid.
The information service sector is the main driving force of the production service sector. The fields of logistics and wholesale supply of production materials are closely related to the manufacturing sector's production activity. These fields have recovered but still lack momentum for development.
Market demand grew steadily. The new orders index stood at 51.2 percent in June, the fourth consecutive month that it has remained above 50 percent. Figures from the first half of the year show that as the effects of the Chinese government's macroeconomic policies gradually emerge, non-manufacturing sector market demand grows steadily.
The production service sector's new orders index stood at 49.6 percent in June, down 4.8 percentage points month-on-month. This is the first time it has dropped to under 50 percent, after remaining above 50 percent for two consecutive months.
Fluctuations in the production service sector's new orders index was in sharp contrast to the gradual increase of the manufacturing sector's new orders index. This indicates that the recovery of demand in China's manufacturing sector is failing to effectively stimulate growth in demand in the production service sector.
The future market expectation index has remained at a high level. The index for business activity expectation stood at 65.3 percent in June, up 0.5 percentage points month-on-month. This was the fourth consecutive month that the index has exceeded 60 percent.
The future expectation index for the production service sector has also surpassed 60 percent for five consecutive months. Future market expectation for major production service sectors, including wholesale and retail supply of production materials, logistics and information services all stood at a relatively high level of above 60 percent.
By People's Daily Online