Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s purchasing manager’s index (PMI) for manufacturing activity expanded to 50.9 in June from 50.6 in May, according to the National Bureau of Statistics data cited by media reports.

PMI expanded amid a gradual recovery in demand and supply as indicated by the rising index for new orders for a second successive month.

Despite a rise, the new export orders’ index stood below, 50 a mark which separates contraction from expansion. In June, the index came to 42.6 from 35.3 in May.

The activity in export markets, however, could take a while to recover as the COVID-19 related uncertainties persisting in many economies. 

The PMI for non-manufacturing activities in June stood at 54.4 from 53.6 in May. China is likely to stay on the recovery track with continued issuance of government bonds for infrastructure spending.

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