China’s Manufacturing, Services Sectors Grow for Fifth Straight Month

Factory activity in China continued to grow for the fifth consecutive month in July, boosted by an uptick in production of pharmaceutical

China's Manufacturing, Services Sectors Grow for Fifth Straight Month

Factory activity in China continued to grow for the fifth consecutive month in July, boosted by an uptick in production of pharmaceutical and electrical goods post the pandemic-driven shutdown earlier this year. According to official figures released by the government, the manufacturing PMI increased to 51.1 in July from 50.9 in June, staying above the 50-threshold indicating expansion.

While activity in the manufacturing sector across China is on the rise, as in other parts of the world, markets remain cautious that a possible second wave of coronavirus infections worldwide could undo the growth. There is also considerable tension that the ongoing floods in China could potentially disrupt factory activity as well.

Meanwhile, China’s services sector also posted growth for the fifth consecutive month, but the rate of growth was slower in June than in the previous month. The non-manufacturing PMI dropped from 54.4 in May to 54.2 during June.

Unlike the manufacturing sector, the services sector in the country has been slower to recover as consumer consumption remains cautious amid worries of a resurgence in infections. In addition, this sector has experienced more job losses and pay cuts as well, which are also weighing on the PMI number.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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