BEIJING (Reuters) - China’s manufacturing activity contracted for a third straight month in June, an official survey showed on Monday, despite Beijing’s stimulus efforts helping to stabilize certain aspects of the industrial sector.
The official purchasing managers’ index (PMI) improved slightly to 49.7 in June from 49.5 in May but stayed below the 50-benchmark separating expansion from contraction, according to data from the National Bureau of Statistics. That figure was in line with analysts’ forecasts in a Reuters poll.
The sub-index tracking production rose to 51, and the gauge tracking new orders ticked higher to 50.2, indicating improvement in industrial activity and demand, according to NBS senior statistician Qinghe Zhao.
Inventory and employment levels at factories, however, continued to decline, coming in at 48 and 47.9, respectively.
The non-manufacturing PMI, which includes services and construction, rose to 50.5 from 50.3 in May. The services sub-index slipped to 50.1 while that of construction accelerated to 52.8, as infrastructure projects continued to progress at a relatively fast pace.
Mainland China’s benchmark CSI 300 index jumped 0.22% following the data release.