Official data released on June 30, 2023 showed that Chinese factory activity shrank for a third straight month in June. Weak economic data from China in April and May has sparked calls for economic stimulus in the world’s second-largest economy.
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Factory activity in China shrank for a third straight month in June, adding to pessimism over weak growth in the world’s second-largest economy and likely stoking calls for further stimulus.
The official manufacturing purchasing managers’ index (PMI) was 49.0 in June, compared with 48.8 in May and 49.2 in April, according to data released by the National Bureau of Statistics on Friday.
The data was in line with market expectations, with economists polled by Reuters forecasting a reading of 49.0.
A reading above 50 indicates expansion in economic activity, while a reading below that level indicates contraction.
Economic growth in April and May was weaker than expected, and calls for more decisive monetary measures to support growth in China intensified as a long-awaited post-coronavirus rebound disappointed.
However, Chinese Premier Li Qiang said on Tuesday that China was still on track to meet its annual growth target of around 5% – a modest target given that China’s economy grew just 3% last year, the weakest in nearly half a century one of performance.
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