China's June Manufacturing PMI Returns to Expansion at 50.3 %

China's manufacturing Purchasing Managers' Index (PMI) for June 2026 rose to 50.3 %, a 0.3‑point increase from the previous month, bringing the index back into expansion territory. The production index reached 51.4 % and the new‑order index climbed to 51.2 %, indicating simultaneous growth in output and demand. Drivers cited include higher domestic demand from accelerated infrastructure projects, the “six‑net” plan, and the “dual‑new” policy, as well as a modest recovery in export orders, which rose to 50.1 %.

The report also notes a sharp fall in the finished‑goods inventory index to 47.7 % and a 6.3‑point drop in the purchase‑price index, reflecting easing raw‑material cost pressure. High‑tech manufacturing continued to strengthen, with the equipment‑manufacturing PMI at 52.5 % and the high‑tech PMI rising by 0.6 % points. While managers’ expectations for future activity improved to 54.3 %, the analysis warns that export volatility and geopolitical uncertainties could affect the sustainability of the expansion.

Overall, the June data suggest a solid, demand‑driven rebound in China’s manufacturing sector, supported by both domestic stimulus and a tentative pickup in overseas orders.