Overview

• China’s official PMI slipped to 49.7 in June, marking a third straight month of contraction despite production and new domestic orders rising above the neutral threshold.
• Consumer prices fell 0.1 percent in May and producer prices recorded their sharpest drop since July 2023, intensifying pressure for further stimulus measures.
• Japan’s private manufacturing PMI edged up to 50.1 in June—the first expansion in 13 months—while May output growth of 0.5 percent fell well short of forecasts.
• Tokyo is racing to secure exemptions from 25 percent U.S. auto-specific tariffs and a 24 percent reciprocal levy set to take effect on July 9 to protect its export-driven factories.
• China’s new export orders index improved to 47.5 but remains below the 50 mark, signaling that external demand has yet to fully recover despite a mid-May trade framework agreement.