China's June manufacturing PMI rises to 50.3, high-tech sector leads third straight month of expansion

Summary

China's National Bureau of Statistics released the official manufacturing purchasing managers' index for June at 50.3 on Tuesday morning, beating the 50.1 consensus forecast and rising from 50.0 in May. It was the third consecutive month that factory activity expanded. The high-tech manufacturing sub-index reached 53.5, driven by AI-related export demand. New export orders returned to expansion at 50.1, their first positive reading in three months, while overall new orders climbed to 51.2 from 49.9. Output prices fell below 50 for the first time in six months at 48.2, indicating softening factory-gate inflation, and employment remained in mild contraction at 48.4.

Why it matters

China's manufacturing sector is holding above the expansion threshold despite US tariffs averaging 47.5 percent, sustained by AI-linked high-tech demand that is less exposed to traditional trade-war pressure. The return of export orders to expansion for the first time since March suggests global demand for Chinese technology goods is absorbing some tariff headwinds. Falling output prices, however, point to margin compression that may limit the recovery's durability.