China's June - PMI of manufacturing sector improves to 53.2 per cent

China's manufacturing sector's Purchasing Managers' Index (PMI) rose 53.2 per cent in June, the China Federation of Logistics and Purchasing said Wednesday.

This is the fourth consecutive rise indicating that the economy is improving. The index rose by 0.1 percentage points from 53.1 in May. (See: China's May manufacturing sector PMI at 53.1 per cent )

The output index rose by 0.2 percentage points to 57.1 per cent from May while the new order index dropped to 55.5 per cent from 56.2 per cent in May and 56.6 per cent in April.

The purchasing price index rose 4.7 percentage points to 57.8 per cent for the seventh consecutive month.

PMI's new export orders factor has remained above 50 for the second consecutive month, 51.4 in June and 50.1 in May, indicating a gradual reversion of the decline in exports.

However, PMI's inventory sub-index dropped to 45 from 46.2 in May suggesting that Chinese manufacturers were hesitant about building up inventories in view of the fragile global economic outlook.