China factory output still contracting
Activity in China's factory sector contracted for a third straight month in June, official data showed on Friday, signalling a patchy recovery in the world's number two economy as global demand and raw material prices slumped. The official manufacturing purchasing managers' index (PMI) – a key measure of factory output – came in at 49, up from 48.8 in May, ending a three-month decline, data from the National Bureau of Statistics (NBS) showed. A reading above 50 indicates expansion, while a reading below reflects contraction. Among the 21 industries surveyed, 12 showed rising PMIs in June, up from eight the month before. NBS statistician Zhao Qinghe said that pointed to a better manufacturing climate. The official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, fell to 53.2 from 54.5. "After a short-lived reopening boost, the service sector appears to be settling into a new post-pandemic normal of slower growth," wrote Julian Evans-Pritchard, head of China economics at Capital Economics. Beijing has set a GDP growth target of about 5 percent for 2023, which Premier Li Qiang this week said he believed would be achieved. (Agencies)