China’s June NBS Manufacturing PMI Rises to 49.7, Services Sector Expands Further

China's June PMI: Manufacturing Inches Higher, Services Sector Expands

Manufacturing PMI at 49.7, Slightly Improving from May

China’s official Manufacturing Purchasing Managers’ Index (PMI), reported by the National Bureau of Statistics (NBS), climbed to 49.7 in June, up from 49.5 in May. The reading met market expectations and indicates a continued contraction in the sector, albeit at a slower pace.

Non-Manufacturing PMI Moves Above 50 Threshold

The Non-Manufacturing PMI, which includes services and construction, rose to 50.5 in June from a previous reading of 50.3. This marks a modest expansion and reflects gradual recovery in China’s services-driven sectors, aligning with policy efforts to boost domestic demand.

Market Implications and Economic Outlook

Although the manufacturing sector remains in contraction territory (below 50), the improvement signals stabilization amid global headwinds. The uptick in services PMI suggests resilience in consumer-facing sectors, a crucial component for sustaining growth in the second half of 2025.

Economists expect targeted stimulus and accommodative monetary policy to continue supporting growth amid ongoing challenges in real estate and external demand.

Internal Linking Suggestions:

• Understanding the PMI and Its Economic Significance
• China’s Economic Recovery: Can Services Lead the Way?
• Global Manufacturing Trends: June 2025 Snapshot