China's manufacturing sector returns to growth in June - Caixin

(Sharecast News) - China's manufacturing sector returned to growth in June, according to figures released on Tuesday. The Caixin manufacturing purchasing managers' index rose to 50.4 from 48.3 in May, coming in above the 50.0 mark that separates contraction from expansion.

According to panellists, better trade conditions and promotional activities supported a fresh rise in new orders.

Caixin said the rate of new order growth was only marginal, however, as external demand remained muted. New export orders declined for the third month in a row in June, albeit at a noticeably weaker pace than in May.

Wang Zhe, economist at Caixin Insight Group, said: "Overall, manufacturing supply and demand recovered in June.

"However, we must recognise that the external environment remains severe and complex, with increasing uncertainties. The issue of insufficient effective demand at home has yet to be fundamentally resolved."