China Manufacturing Shrinks the Least in 3 Months

China’s official NBS Manufacturing PMI climbed to 49.7 in June 2025 from May’s 49.5, matching expectations while marking the third consecutive month of contraction in factory activity. It was the softest contraction in the sequence, with output rising the most in three months (51.0 vs 50.7 in May), supported by a trade deal with the US and Beijing’s ongoing efforts to stimulate domestic demand and bolster the sluggish economy. Additionally, new orders grew for the first time in three months (50.2 vs 49.8), while foreign sales fell at the slowest rate in the same period (47.7 vs 47.5). A similar trend was seen in buying activity, which rose for the first time since March (50.2 vs 47.6). Meanwhile, employment fell at a slightly faster pace (47.9 vs 48.1), and delivery times lengthened modestly (50.2 vs 50.0). On the price front, both input costs (48.4 vs 46.9) and selling prices (46.2 vs 44.7) fell at a slower pace. Looking ahead, sentiment weakened to a nine-month low (52.0 vs 52.5).