Employees work at an auto component company in Liuzhou, Guangxi Zhuang autonomous region. HE HUAWEN/FOR CHINA DAILY
China's manufacturing sector is expected to remain resilient and sustain its expansion in the second half despite a slight moderation in momentum in July, as policymakers step up efforts to bolster domestic demand while ensuring a smooth transition from old growth drivers to new ones, experts said.
Their comments came as the RatingDog China General Manufacturing Purchasing Managers' Index — which gauges operating conditions in the sector — edged down to 50.9 in July from 51.7 in June, marking a four-month low but remaining above the 50-point mark, that separates expansion from contraction, for an eighth consecutive month, a private survey showed on Monday.
Highlighting the necessity of consolidating the manufacturing sector's expansion momentum, experts said boosting domestic demand will be a key policy priority in the second half, with policy support expected to place greater emphasis on coordinating demand expansion with supply optimization.
Despite the moderation, the survey showed that export activity returned to expansionary territory in July after two consecutive months of contraction, while overall new orders grew for a 14th consecutive month — the longest stretch of gains since 2018 — though the pace of growth slowed from June.
