The Chinese Economy Continues to Grow,
Largely Due to a Buoyant Services Sector


 
The Manufacturing sector of the Chinese economy remains in the doldrums. The June reading of the overall Sales Managers Index for Manufacturing continued below the 50 "no growth" line. The (modestly) good news is that all three months of the second quarter survey registered an improvement on quarter 1 readings.

The (larger) Services sector survey continues to reflect much greater optimism, and real growth in economic activity. Overall the surveys suggest that the Chinese economy continues to slowly regain its previously healthy levels of economic growth, despite the drag of the less than buoyant Manufacturing sector.


The marked difference between the Chinese Services and Manufacturing sectors performance continues to remain in evidence. But overall the latest June Sales Managers Survey shows the economy as a whole is now slowly waking up after its period of relative inactivity.

Over the whole of the first half of 2024 the overall Manufacturing Sector Sales Managers Index remained below the crucial 50 index level, indicating declining output. In contrast the Services Sector overall Sales Managers Index remained at an average index reading over the first half of the year of 52.4, indicating significant real growth.

The now dominant Services sector's resilience provided enough impetus to ensure that the combined Manufacturing + Services sector Index remained over the 50 no growth level, with a quarter 1 reading of 50.9, indicating overall albeit modest growth in the Chinese economy. The second quarter showed a small improvement with the second quarter index at just over 51.

Continue reading for more analysis, charts & data. [SUBSCRIBER ONLY]

Take a Trial to Continue Reading...

Unlock all insights, data tables, and tools.

Register now



More perspectives using World Economics data

Israeli Governance Downgraded
Israeli Governance Downgraded
Israel’s rating has declined on the World Economics Governance Index over the past decade. The Governance Index data determines the Governance grading of countries. Consequently, Israel currently attains a B-grade in 2025. More for subscribers:   See more data for Israel... See more data for Asia... See more Governance Ratings data... Read: Places for In...
Europe’s Combined GDP is far Larger than Russia's
Europe’s Combined GDP is far Larger than Russia
Americas support for Ukraine is no longer certain. What guarantee does Europe have of containing Russia without the big guns of the USA? It is said (attributed to George Bernard Shaw and many others) that God always favours the big battalions in war, meaning that whoever has the greatest resources is likely - sooner or later - to triumph over the many other factors that can play a part. If this is th...
Japanese Birth Rate to Fall Below Lowest Forecasts
Japanese Birth Rate to Fall Below Lowest Forecasts
The birth rate in Japan is estimated to have fallen even further in 2025 than the government’s worst forecasts. Based on data from the first 10 months of 2025, the number of births is likely to have dropped below the 670,000 figure of 2024 (which excludes children born to foreign residents). This would be the lowest level since government records began. This falling birth rate will mean Japan’s Total ...