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China’s electronic information manufacturing sector maintained steady growth in the first five months of 2022, data from the Ministry of Industry and Information Technology showed.

The value-added output of electronic information manufacturers with annual operating revenue of at least 20 million Yuan (about 3 million U.S. dollars) expanded 9.9 percent year on year during the period.

The growth rate was 6.6 percentage points higher than the overall increase of value-added industrial output registered in the same period, the ministry said.

The output of mobile phones fell 1.7 percent year on year to 609 million units from January to May, including 470 million units of smart phones.

Data also showed that the electronic information manufacturing sector raked in 5.66 trillion Yuan of revenue in the first five months, up 7.4 percent year on year. Profits of the sector totaled 257.8 billion Yuan, up 0.2 percent year on year.

China’s factory activity expanded in June for the first time in four months as new orders and production improved, suggesting the country’s economic recovery is gathering pace amid better containment of the COVID-19 pandemic and more substantial policy support, officials and experts said on Thursday.

The official purchasing managers index for China’s manufacturing sector in June came in at 50.2, compared with 49.6 in May, said the National Bureau of Statistics, signifying a return to expansionary territory for the first time since February.

A PMI reading above 50 points to expansion, while one below signals contraction.
Zhao Qinghe, a senior statistician with the NBS, attributed the recovery to the government’s effective measures to control the pandemic and implement a package of stimulus policy measures aimed at stabilizing the economy.

The sub index for production came in at 52.8 versus 49.7 a month earlier, as production resumption advanced further in June, and COVID-19 outbreaks eased in more cities across the nation. The gauge for new orders also moved back to expansionary territory, rising to 50.4 from 48.2 in May.

China’s June nonmanufacturing PMI stood at 54.7, following a 47.8 reading in May. And the country’s official composite PMI, which includes both manufacturing and services activity, came in at 54.1 in June, compared with 48.4 in May, said the NBS.

“Given some recent material steps taken to ease COVID controls, including reducing inbound quarantine times by half and removing the ‘asterisk’ on travel itinerary e-cards, we expect mobility to improve further and growth momentum to remain positive in July,” said Lu Ting, chief China economist at Nomura.

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