China’s manufacturing activity picked up pace in June, an initial survey by HSBC showed, a sign that its economy is benefiting from recent stimulus moves.
The bank’s purchasing managers’ index (PMI), a gauge of the sector’s health, rose to 50.8 in June, from 49.4 in May.
A reading above 50 shows expansion. It is the first time since December that HSBC’s PMI has been above that level.
China has taken various steps in recent months, including cutting taxes for small firms, to help boost its economy.
Analysts said the latest HSBC PMI reading – which measures activity in smaller factories – showed the measures were starting to have an impact on growth.
“This month’s improvement is consistent with data suggesting that the authorities’ mini-stimulus are filtering through to the real economy,” said Qu Hongbin, chief China economist at HSBC.
Earlier this month, China reported that its official PMI reading – which measures activity in big factories – rose to a five-month high of 50.8 in May.
China’s official PMI for June will be released early next month.
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