Policy Effort to Bolster Growth Bears Fruit

A report from chinadaily.com.cn on July. 1st, 2025:

Stepping up policy support for the manufacturing sector will be necessary for China in the second half of the year in order to stabilize employment and ensure a steady growth trajectory amid lingering uncertainties, economists and analysts said.

Their remarks came as the latest data showed that earlier policy efforts to bolster economic growth have continued to bear fruit, with key indicators of China’s manufacturing sector improving in June as production and market orders picked up.

 “Supply and demand in the manufacturing sector both improved in June,” said Bai Wenxi, vice-chairman of the China Enterprise Capital Union.

The Caixin China General Manufacturing Purchasing Managers’ Index, a privately surveyed barometer of the sector’s health, rose to 50.4 in June from 48.3 in May, showing that the manufacturing sector resumed expansion after a contraction in May, as earlier policy measures aiming to stabilize the economy continued to take effect.

The People’s Bank of China, the country’s central bank, vowed on Friday to amplify the intensity of monetary policy adjustments and step up support for technological innovation and equipment upgrades, after launching a series of measures earlier in the week to boost consumption.

Anna An, president of Henkel China, said the German industrial and consumer goods group recognizes China’s strong commitment to developing high-end manufacturing and related services and has greatly benefited from its rapid growth in key sectors, such as automotive, consumer goods and electronics.

The National Bureau of Statistics said the PMIs for equipment manufacturing and high-tech manufacturing came in, respectively, at 51.4 and 50.9 in June, staying in expansionary territory for two consecutive months.