China's non-manufacturing sector grew in June
China's non-manufacturing sector grew at a faster rate in June.
The Purchasing Managers Index (PMI) of China's non-manufacturing sector, rose 1.5% to 56.7% in June, according to the China Federation of Logistics and Purchasing (CFLP). The figure rebounded after falling for two consecutive months as non-manufacturing sector growth accelerated.
A PMI reading above 50% indicates expansion from the previous month, while readings below this mark indicate a contraction. The figure shows the non-manufacturing sector in China has maintained steady and strong growth.
The PMI for China's manufacturing sector, which grew at its slowest pace in seven months to 50.2% in June. Analysts said the extent of the slowdown in June this year was minimal compared with past years, which suggests that the economy is building up a foundation for stabilized growth.
In June, the sub-index for new export orders of the non-manufacturing sector stayed flat at 50.5%.
The sub-index for intermediate input prices lost 1.5% to 52.1% while that for charges rose 0.1% to 48.6%, standing below 50% for the second month in a row.
Meanwhile, the sub-index for business activity expectations in June gained 0.1$ to 65.5%, which reflects non-manufacturing firms' optimism about the market.
The June figures point to possibilities of stronger economic growth in the second half of this year.
In the latest moves to spur investment and growth, the central bank cut the benchmark interest rate by 25 basis points last month following a reduction of 0.5 percentage points for the reserve requirement ratio for banks in May.