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China’s factory activity contracts for second straight month
Factory activity in China remained in contraction for a second consecutive month in June, adding to difficulties facing the world’s second-largest economy ahead of next month’s key third plenum.
The official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners – stood at 49.5 in June, unchanged from May, according to data released by the National Bureau of Statistics on Sunday.
Within the official manufacturing, the new manufacturing export order subindex, meanwhile, remained unchanged at 48.3 in June.
A reading above 50 typically indicates expansion of activity, while a reading below suggests contraction.
Elsewhere, the non-manufacturing PMI – a measurement of sentiment in the service and construction sectors – fell to 50.5 in June from 51.1 in May, remaining in expansion territory for the sixth straight month.
The delayed third plenum will see top Communist Party officials gather in Beijing in two weeks’ time, with the much-anticipated conclave a traditional setting to unveil major economic strategies for the next five to 10 years.
