China’s factory activity strengthens, virus crisis hits exports and recovery

China’s factory activity grew stronger in June backed by optimism for a quick economic recovery globally. However, struggling export orders indicated that the virus-driven disruptions will continue to cap economic growth longer than expected.

The official manufacturing Purchasing Managers’ Index (PMI) was monitored at 50.9 in June. This came larger than the 50.6 reading in May as it surpassed the 50.4 outlook rendered by analysts, data from the National Bureau of Statistics showed on Tuesday.

The increase was brought by the quickening pace of expansion in production. The forward-looking total new orders gauge also grew, increasing to 51.4 from 50.9 seen in May. This indicated that domestic demand fared better while industries from non-ferrous metals, general equipment, and electrical machinery showed signs of recovery.