Manufacturing PMI Overview - June manufacturing PMI in China is 49.7%, a slight increase of 0.2 percentage points from the previous month, remaining in the contraction zone below 50%[3] - Large enterprises reported a PMI of 51.2%, up 0.5 percentage points; medium enterprises at 48.6%, up 1.1 percentage points; small enterprises at 47.3%, down 2 percentage points, indicating significant divergence in performance across different enterprise sizes[4] Production and Demand Indicators - The production index for June is 51%, an increase of 0.3 percentage points from May, indicating continued expansion[4] - New orders index stands at 50.2%, up 0.4 percentage points, while new export orders are at 47.7%, up 0.2 percentage points, suggesting stronger domestic demand compared to external demand[4][12] - The index representing supply-demand balance (new orders minus finished goods inventory) is at 2.1%, down 1.2 percentage points, indicating weakened effective demand[4][13] Inventory and Price Trends - Finished goods inventory index is at 48.1%, up 1.6 percentage points; raw materials inventory index is at 48%, up 0.6 percentage points, reflecting a slight recovery in inventory levels[5][20] - The factory price index is at 46.2%, up 1.5 percentage points, while major raw material purchase price index is at 48.4%, also up 1.5 percentage points, indicating ongoing deflationary pressures in the manufacturing sector[5][20] Employment and Supplier Dynamics - Employment index for June is at 47.9%, down 0.2 percentage points, indicating a contraction in employment conditions, particularly among small enterprises[22] - Supplier delivery time index is at 50.2%, up 0.2 percentage points, suggesting slight delays in supplier deliveries[22] Overall Economic Outlook - The overall expectation for production activities in June is at 52.0%, down 0.5 percentage points, reflecting a pessimistic outlook among manufacturing enterprises[14][16] - The non-manufacturing PMI is at 50.5%, up 0.2 percentage points, with the construction sector showing a notable increase to 52.8%, while the service sector slightly declined to 50.1%[5][12]