China Manufacturing PMI Rebounds in July 2023, but Challenges Remain for Enterprises
The manufacturing Purchasing Managers Index (PMI) in China experienced a slight rebound in July for the second consecutive month, indicating improving conditions in the sector. Senior statistician Zhao Qinghe from the Service Industry Survey Center of the National Bureau of Statistics provided an interpretation of the data.
According to Zhao, out of the 21 industries surveyed, 10 were in the expansion zone, signaling growth. This is an increase of two industries from the previous month, highlighting a continued improvement in the overall level of manufacturing prosperity. While the Chinese manufacturing PMI reached 49.3% in July, indicating expansion, some companies in the survey expressed concerns regarding the complex and challenging external environment.
On a global scale, the manufacturing PMI in the United States and the euro zone recorded values of 49.0% and 42.7% respectively. Both regions continued to fall below the critical point, indicating a contraction in their manufacturing industries. Major economies such as Europe and the United States faced ongoing shrinkage in their manufacturing sectors.
Despite the positive rebound in China, some difficulties persist for domestic enterprises. The surveyed companies reported a decrease in overseas orders and emphasized that insufficient demand remains their main challenge. These factors highlight the uncertainty and volatility in the current external environment.
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