June official Manufacturing PMI hits six-month high of 51.0%

It's at its highest level this year.

June official Manufacturing PMI jumped from 50.8% in May to 51.0% by the end of June, its highest level this year.

According to a research note from CCB International, the Production Index rose from 52.8% in May to 53.0% by the end of June.

Meanwhile, the New Order Index and New Export Order Index were 52.8% and 50.3%, up 0.5ppt and 1.0ppt from May, indicating rising demand.

The Raw Materials Inventory Index remained flat at 48.0% while the Finished Goods Inventory Index rose 0.2ppt to 47.3%, the report said, a sign producers are still reluctant to begin re-stocking.

Here's more from CCB International:

The Raw Materials Purchase Price Index was up 0.1ppt to 50.1% in June, suggesting PPI MoM is likely to remain flat or else see only marginal improvement in June.

The HSBC Manufacturing PMI final reading hit a seven-month high of 50.7% in June. June official Service Sector PMI was 55.0%, its second-highest peak this year while the HSBC Service Sector PMI reached a fifteen-month high of 53.1% in the same period.

Overall, the most recent PMI numbers indicate China’s economy s stabilizing and that the Chinese government's recent measures to shore up growth seem to be working.