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Economy

Economic Watch: China's manufacturing sector sees stronger momentum with steady transformation

June 30, 2025


Abstract : China's manufacturing sector gained momentum this month, with more industries returning to growth and high-tech and consumer goods production remaining robust, official data showed Monday.

BEIJING, June 30 (Xinhua) -- China's manufacturing sector gained momentum this month, with more industries returning to growth and high-tech and consumer goods production remaining robust, official data showed Monday.

The purchasing managers' index (PMI) for China's manufacturing sector rose for the second straight month in June to 49.7, the National Bureau of Statistics (NBS) said in a statement. The reading was 49.5 in May and 49 in April.

Of 21 surveyed industries, 11 logged expansion this month, up from 7 in May. The PMIs for the manufacturing of equipment, high-tech products and consumer goods have stayed in the expansion zone for two consecutive months, standing at 51.4, 50.9, and 50.4, respectively.

A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.

Monday's data also showed that the non-manufacturing PMI came in at 50.5 in June, up 0.2 percentage points from the previous month, and the general PMI climbed from 50.4 to 50.7.

Specifically, the construction sector gained momentum, while the service sector continued its upward trend, with postal services, information technology and financial services maintaining relatively high levels of activity.

With all three major indices on the rise, the overall economic climate continued to improve, NBS statistician Zhao Qinghe said.

China has intensified its policy support to bolster the economy amid external uncertainties, effectively driving industrial growth. In May, the value-added output of major industrial enterprises rose by 6.2 percent year on year, underscoring the sector's strong resilience and growth potential.

In particular, the national policies promoting industrial equipment upgrades and consumer goods trade-ins have injected vitality into consumer demand and stimulated production, NBS spokesperson Fu Linghui has said.

Meanwhile, China's efforts in industrial transition have also gained traction, with a steady push toward high-end, intelligent and green production.

High-tech manufacturing -- a key pillar of the industrial transformation -- saw its value-added output jump 8.6 percent year on year in May. The output of new energy vehicles and solar cells surged by 31.7 percent and 27.8 percent, respectively, continuing their rapid growth trajectory.

Despite the positive trend, analysts cautioned that challenges persist as global economic uncertainties and low prices continue to weigh on industrial recovery.

Fu emphasized the need to fully implement policies supporting industrial development, expand domestic demand, and cultivate new quality productive forces.

Further efforts will be made to optimize the industrial structure by transforming and upgrading traditional sectors, in a bid to ensure the sustained and healthy development of the economy, he noted.

China's economy grew by 5.4 percent year on year in the first quarter of 2025, up from the 5 percent full-year growth rate recorded in 2024.

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