Manufacturing PMI Insights - In June, China's Manufacturing PMI rose to 49.7% from 49.5%, with new orders and purchasing indices returning above 50%[1] - The new orders index was at 50.2% (previously 49.8%), while the production index remained above 50% at 51.0%[1] - The purchasing quantity index increased to 50.2% from 47.6%, indicating improved supply-side conditions[1] Demand and Supply Dynamics - New export orders index stood at 47.7% (previously 47.5%), and the import index improved to 47.8% from 47.1%[1] - Raw material inventory index was at 48.0% (previously 47.4%), and finished goods inventory index was at 48.1% (previously 46.5%) indicating a decline in inventory levels[1] Price and Employment Trends - The purchasing price index was at 48.4% (previously 46.9%), while the factory price index decreased to 46.2% from 44.7%[1] - The employment index for manufacturing was at 47.9% (previously 48.1%), reflecting a slight decline in workforce levels[2] Non-Manufacturing PMI Overview - June's construction PMI was at 52.8% (previously 51.0%), and the services PMI was at 50.1% (previously 50.2%) indicating stable growth in these sectors[2] - New orders indices for construction and services were at 44.9% and 46.9% respectively, showing slight improvements[2] Industrial Performance Metrics - From January to May, industrial enterprises' revenue growth slowed to 2.7% (previously 3.2%), while profits turned negative at -1.1% (previously 1.4%) for the same period[3] - In May, profits dropped by 9.1% year-on-year, a significant decline compared to the previous year's growth of 3.0%[3] Investment Recommendations - The rebound in new orders and purchasing indices suggests potential recovery, influenced by global uncertainties and preemptive actions by businesses[4] - The performance of price and employment indices may provide more significant signals for macroeconomic recovery[4]

Industrial Performance - In the first four months, industrial enterprises' cumulative revenue increased by 3.2% year-on-year, down from 3.4% in the previous period[2] - Cumulative profit for industrial enterprises rose by 1.4% year-on-year, up from 0.8% previously, with April's profit showing a 3.0% increase year-on-year[2] - Private industrial enterprises achieved a cumulative profit growth of 4.3%, recovering from a decline of 0.3% in the previous period[2] Price and Inventory Trends - The Producer Price Index (PPI) for April showed a year-on-year decline of 2.7%, continuing a downward trend for two consecutive months[3] - Cumulative inventory of finished products in industrial enterprises increased by 3.9% year-on-year, down from 4.2% previously, marking the first decline since November 2024[3] PMI Insights - The manufacturing PMI for May was reported at 49.5%, slightly up from 49.0% in April, with the production index exceeding the critical threshold[3] - The new orders index for manufacturing PMI in May was 49.8%, an increase from 49.2% in April, while the export orders index rose to 47.5% from 44.7%[3] Employment and Sector Performance - The employment index for manufacturing in May was 48.1%, up from 47.9% in April, indicating a slight improvement in employment conditions[4] - The construction PMI for May was 51.0%, down from 51.9% in April, while the services PMI remained stable at 50.2%[4] Economic Outlook - June 18 is identified as a critical observation point for economic and policy developments, following the release of key economic data and the Federal Reserve's meeting[5] - The report highlights risks including external uncertainties and potential delays in counter-cyclical policies[6]