In June this year, the China HSBC Flash Manufacturing Purchasing Managers Index (PMI) increased to 49.6, up from May's final reading of 49.2, as announced by the HSBC on June 23.
In June, the HSBC new order index increased to 50.3, rising above the threshold of 50 points for the first time in four months.
According to Hongbin Qu, the HSBC's chief economist for China, Chinese enterprises have started to build up inventory as both domestic and overseas demand have improved. However, the employment index has continued to decline, indicating that the economy is still under pressure. Despite the improvement in the China HSBC flash manufacturing PMI in June, the PMI still remained below 50. It is thought that China will likely implement further monetary easing policies to maintain the momentum of its economic recovery.