The seasonally adjusted RatingDog China General Manufacturing Purchasing Managers' Index (PMI) eased slightly to 51.7 in June from 51.8 in May but remained above the 50.0 growth threshold. The reading also stayed above the long-run average of 50.8 since 2004, while the second-quarter average reached 51.9, the highest since the fourth quarter of 2020.

New orders continued to increase, supporting further growth in manufacturing output, with second-quarter production recording its strongest expansion since the second quarter of 2024. Export orders declined only marginally, while manufacturers increased employment for the first time in three months, with hiring at its fastest pace since August 2023.

Cost pressures eased further as input prices continued to rise but at a slower pace, with inflation slowing to a five-month low and the weakest level since January. Output prices also increased, reflecting continued pricing power.

Manufacturers remained optimistic about the year ahead, supported by expectations of stronger demand, business expansion, new product launches and higher production capacity. Buying activity stayed above its long-run trend, while inventories of inputs and finished goods continued to increase, pointing to sustained confidence in manufacturing activity.

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