China’s manufacturing sector showed signs of stabilizing in June, with official data indicating a modest improvement, though activity remained in contraction territory for the third consecutive month.
The National Bureau of Statistics reported Monday that the Purchasing Managers’ Index (PMI) rose to 49.7 in June, up from 49.5 in May and slightly above analysts’ expectations of 49.6. However, it remained below the neutral 50-point threshold that separates expansion from contraction.
NBS statistician Zhao Qinghe said in a statement that the country’s “economic prosperity level remained expansionary overall,” highlighting stronger manufacturing output and improved market demand.
Capital Economics’ China economist Zichun Huang said the PMI data suggests that “China’s economy regained some momentum, supported by a rebound in manufacturing and construction.” Still, Huang cautioned that the second half of the year could see a slowdown due to weak export growth and waning fiscal support.
China’s broader recovery continues to face significant headwinds, including a protracted property sector crisis, sluggish consumer spending, and persistent youth unemployment. Adding to the pressure are U.S.-imposed tariffs, although tensions between Beijing and Washington have eased slightly following a truce announced in May.
Trump, in a Sunday interview, expressed optimism about relations with Beijing, saying, “We’re getting along well with China.”
