Overview

• The National Bureau of Statistics reported the official manufacturing PMI at 49.7 in June, a slight rise from May’s 49.5 yet below the 50-point threshold for expansion.
• The production sub-index increased to 51 and the new domestic orders gauge climbed to 50.2 while factory employment and inventory readings fell to 47.9 and 48, respectively.
• A private Caixin/S&P Global survey showed factory activity returned to growth with its PMI jumping to 50.4 in June from 48.3 in May.
• Consumer prices dropped 0.1% in May and the producer price index saw its steepest decline since July 2023, contributing to a 9.1% year-on-year plunge in industrial profits.
• Under the updated trade framework, China will review export applications for controlled items and the U.S. will lift certain restrictive measures according to a commerce ministry statement.