HONG KONG (AP) — chinese Factory activity accelerated in June as demand for artificial intelligence hardware boosted exports, an official survey showed on Tuesday.
The official Manufacturing Purchasing Managers Index (PMI) rose to 50.3. 50 people in Mayaccording to the Office for National Statistics, exceeded economists’ expectations. This is despite concerns that China’s economy will lose momentum.
On a scale of 0 to 100, measurements above 50 reflect expansion and below 50 indicate contraction.
The sub-index for new orders in June rose to 51.2 from 49.9 in May, and the sub-index for production also expanded from 51.2 to 51.4.
“China’s economy It’s been gaining some momentum recently. However, this remains heavily dependent on exports and AI-related technologies,” Julian Evans-Pritchard, head of China economics at Capital Economics, said in a note on Tuesday, adding that “external demand remains the main driver of China’s manufacturing growth.”
Huo Lihui, chief statistician at the National Bureau of Statistics, said in a statement that the June figures reflect the warming economic situation in China.
But some economists warned that Chinese consumers remained cautious after the crisis. Years of stagnation in the real estate sector And domestic demand remains sluggish.
Lin Song, chief economist for Greater China at ING Bank, said further policy support from the Chinese government this year to boost domestic consumption and investment could be beneficial and help avoid an increasingly imbalanced growth pattern.
Chinese leaders set economic growth goals 4.5%～5% Economists predict the country is likely to reach that goal with the next wave of aid. AI-related exports are rapidly increasing.
