In particular, the contract of manufacturing continued, mainly due to the influence of American tariffs.
Demand and industry trends of manufacturing sector
CN Wire revealed important trends in June PMI survey:
- Manufacturing production as demand for demand improved 0.3 percentage (PPS) to 51.0%.
- The new order index rose 0.4 pPS to 50.2, which is above 50 neutral levels.
- The external demand as the new export order index was slowly contracted, which was increased to 48.3%to 0.8 PPS.
- New export order contracted for the 14th month, due to large -scale American tariffs.
- June data showed that small businesses have the brunt of American tariffs. Large enterprise PMI rose 0.5 pps to 51.2%, medium -sized enterprise with PMI to 48.6%from 1.1 ppS. However, small business activity lagged behind 47.3%.
China’s economic approach and a US-China business deal
The June figures were aligned with improving the emotion towards China’s economic approach. Last week, City revised its 2025 development forecast from 4.7% to 5%, giving mirrors to the development target of Beijing. Today’s data and city upgrade reached an important agreement on trade with the US and China.
US President Trump and Commerce Secretary Howard Lutnik reportedly stated that the US and China signed a trade agreement on 25 June. Following the initial lack of confirmation, Beijing’s news suggested progress on a deal. China’s Ministry of Commerce allegedly said:
“China, according to the law, will approve export applications for controlled items that meet relevant requirements. The US side will accordingly raise a series of restrictive measures on China.”
Despite the agreements, major tariffs remain, the deal suggestion can only partially address business obstacles. US Treasury Secretary Scott Besent poured cold water at the expectation of the end of the tariff, reportedly said:
