PMI Rebounds Into Expansion Territory
China's manufacturing purchasing managers' index (PMI) rose to 50.3% in June 2026, up 0.3 percentage points from May and returning to expansion territory above the 50-point threshold, NBS data showed. The services business activity index reached 50.4%, while construction stood at 49.0%.
Key Components
- New orders index: Recovered, becoming the main driver of PMI improvement
- Production index: 51.5%, up 0.1 percentage point from May
- New export orders: 50.3%, up 0.8 percentage points, indicating improved external demand
- Import index: 50.1%, up 0.3 percentage points
Structural Shift
The data signals a marginal improvement in the supply-demand pattern, addressing the 'strong production, weak demand' dynamic. Large enterprises are experiencing faster growth, while small and medium enterprises have slowed their contraction pace.
Implications
The PMI recovery supports expectations of gradual economic stabilization, though sustained demand strengthening remains critical for H2 momentum.