China Factory Activity Hits 3-Month Low

2026-07-01 01:52 By Chusnul Chotimah 1 min. read

The RatingDog China Manufacturing PMI inched down to a three-month low of 51.7 in June 2026 from 51.8 in May, but above forecasts of 51.6.

It also remained above the long-run survey trend of 50.8 since 2004, and caps off the strongest quarter since late 2020.

Output grew solidly, while new orders rose for the thirteenth straight month, matching the joint-longest expansion sequence since 2018.

However, foreign sales fell for the second straight month.

Meanwhile, employment climbed for the first time in three months, with job creation reaching its strongest level since August 2023.

Delivery times lengthened only marginally, marking the weakest deterioration in the current four-month sequence.

On prices, input price inflation eased from April's four-year high to its weakest level since January.

Meanwhile, output price inflation edged up, extending its increase to a sixth consecutive month, the longest such sequence since 2021.

Finally, sentiment weakened to a five-month low.



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China Factory Activity Hits 3-Month Low
The RatingDog China Manufacturing PMI inched down to a three-month low of 51.7 in June 2026 from 51.8 in May, but above forecasts of 51.6. It also remained above the long-run survey trend of 50.8 since 2004, and caps off the strongest quarter since late 2020. Output grew solidly, while new orders rose for the thirteenth straight month, matching the joint-longest expansion sequence since 2018. However, foreign sales fell for the second straight month. Meanwhile, employment climbed for the first time in three months, with job creation reaching its strongest level since August 2023. Delivery times lengthened only marginally, marking the weakest deterioration in the current four-month sequence. On prices, input price inflation eased from April's four-year high to its weakest level since January. Meanwhile, output price inflation edged up, extending its increase to a sixth consecutive month, the longest such sequence since 2021. Finally, sentiment weakened to a five-month low.
2026-07-01
China Manufacturing Growth Tops Forecasts
The RatingDog China Manufacturing PMI eased to 51.8 in May 2026 from an over five-year high of 52.2 in April, but came in above forecasts of 51.4. Growth for new orders and output moderated but stayed robust, supported by domestic demand, new customers and product upgrades, while export orders dipped slightly. Production also rose strongly, among the highest since late 2024. Meanwhile, employment edged into marginal contraction, and supplier delivery times lengthened for a third month, albeit modestly, alongside higher input purchases and six consecutive months of rising input stocks. Inflationary pressures eased, with input and output price increases slowing for the first time in six and seven months respectively, though costs remained elevated due to raw materials, energy and supply disruptions. Business confidence stayed positive but softened, driven by expectations of stronger demand, new orders and capacity expansion.
2026-06-01
China Factory Activity Growth Strongest Since 2020
The RatingDog China General Manufacturing PMI climbed to 52.2 in April 2026 from 50.8 in March, above the expected 51. The latest reading marked the fastest expansion in the sector since December 2020, with output growing at its fastest pace since June 2024. Output expansion was driven by accelerated growth in new orders, which recorded its second-highest growth rate in nearly five years. Employment remained flat, while the backlog of work continued to rise, though at a slightly slower pace than the previous month. Supplier delivery times continued to lengthen as raw material shortages, delivery disruptions, rising input prices, and Middle East tensions weighed on supply chains. Input price inflation accelerated to the highest level in slightly over four years, due to higher raw material and oil prices. As a result, output price inflation rose to its highest level in four and a half years. Finally, business sentiment strengthened amid rising market demand.
2026-04-30