China – Details of June PMIs point to underlying weakness
The official manufacturing PMI rose in June but remained in contraction territory. Exports, employment, and price momentum have remained rather weak.
Tommy Wu
Commerzbank Economic Research
06/30/2025
Non-manufacturing PMI improved on the back of increased infrastructure investment, but the underlying services momentum remained lackluster. As such, the details in June PMI readings support our view that the recent rise in retail sales growth and robust industrial production, thanks to the stimulus measures, are unlikely to be long-lasting.
Manufacturing PMI remained in contraction
June official manufacturing PMI rose to 49.7 from 49.5 in May. Yet, it remained in contraction territory below the 50-neutral mark for the third consecutive month, pointing to continued weakness. This is despite the production component rising further above 50 and overall new orders returning to above 50.
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