China’s official NBS Manufacturing PMI rose to 50.3 in June 2026 from 50.0 in May, beating market expectations of 50.1. This marked the fourth consecutive month of expansion in factory activity, driven by faster output growth (51.4 vs. 51.2 in May). New orders returned to growth after contracting in the previous month (51.2 vs. 49.9), and foreign orders also moved back into expansion territory (50.1 vs. 48.6), supported by robust global demand related to artificial intelligence.
Labor market conditions remained weak (employment at 48.4 vs. 48.6), but purchasing activity swung back to expansion (51.4 vs. 49.8), and supplier delivery times improved (49.9 vs. 49.2).
On the price side, input cost inflation eased but stayed high (54.2 vs. 60.5), while output prices declined for the first time in six months (48.2 vs. 51.9). Overall, business confidence strengthened modestly, with the sentiment index edging up to 54.3 from 53.9.
