Growth in China's June factory activity dipped to a four-month low on higher raw material costs, a shortage of semiconductors and a COVID-19 outbreak in the major export province of Guangdong, amid wider supply chain disruptions in Asia.
"Overall, not a great month but no really worrying signs...China's growth rate is still positive, though it would be a lot lower in H2 than H1, mostly because of the change in base effects," said Pang, referring to year-ago comparisons with 2020's pandemic disruptions.The sub-index for production eased to 51.9, a four-month low, from 52.7 the previous month.
A sub-index for raw material costs in the official PMI stood at 61.2 in June, compared with May's 72.8, as the government cracked down on high raw material prices.The world's second-largest economy has largely recovered from disruptions caused by the pandemic, but Gross Domestic Product growth is set to moderate.