FX.co ★ China Manufacturing Shrinks for 3rd Month

In June 2025, China's National Bureau of Statistics (NBS) reported an increase in the Manufacturing Purchasing Managers' Index (PMI) to 49.7, up from May’s 49.5, aligning with market predictions. Despite this rise, the index still indicates a third consecutive month of contraction in manufacturing activity. However, this was the mildest contraction observed in the sequence, with production improving to 51.0 from May’s 50.7. This growth was supported by a trade agreement with the United States and ongoing efforts by Beijing to boost domestic demand and invigorate a sluggish economy. Notably, new orders saw an expansion for the first time in three months, reaching 50.2 from 49.8, while the decline in international sales was less pronounced, recorded at 47.7 compared to 47.5. Purchasing activity also demonstrated an upward trend, increasing for the first time since March to 50.2 from 47.6. Conversely, employment saw a slightly quicker decline, falling to 47.9 from 48.1, and delivery times marginally extended to 50.2 from 50.0. Regarding pricing, both input costs and selling prices decreased at a slower rate, with input costs at 48.4 down from 46.9, and selling prices at 46.2 compared to 44.7. Looking forward, business confidence dipped to a nine-month low of 52.0, down from 52.5.