BEIJING (dpa-AFX) - China's manufacturing activity expanded in June, official survey results from the National Bureau of Statistics revealed Tuesday.
The manufacturing Purchasing Managers' Index rose to 50.3 in June from 50.0 in May. A score above 50.0 indicates expansion. The reading was also slightly above forecast of 50.1.
Both production and new orders strengthened in June. The production sub-index rose 0.2 percentage points to 51.4. Likewise, the new order sub-index climbed to 51.2.
The non-manufacturing PMI, which includes sub-indices for services and construction, posted 50.2 in June, up from 50.1 in the previous month. The score was seen at 49.9.
The overall composite output index that comprises manufacturing and non-manufacturing activities, edged up to 50.6 in June from 50.5 in May.
ING economist Lynn Song said the survey does not suggest a major turnaround in June and a second-quarter slowdown is still likely.
'Sluggish domestic demand could potentially prompt further policy support, with markets looking ahead to July's Politburo meeting,' the economist added.
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