ECONOMY

China Manufacturing Expands Despite Muted Foreign Demand, Caixin PMI Shows

Published: Jul. 1, 2025 9:45 a.m. GMT+8

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China’s manufacturing sector returned to expansion in June following a brief contraction in May, although overseas demand continued to fall amid persistent external uncertainties, a Caixin-sponsored survey showed Tuesday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 50.4, up from 48.3 in May. A reading above 50 indicates an expansion in activity, while a number below that signals a contraction.

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China’s Caixin Manufacturing PMI rose to 50.4 in June from 48.3 in May, indicating a return to sector expansion.
Foreign demand fell for the third consecutive month, and employment contracted despite improved supply and demand.
Input and output prices declined, delivery times lengthened, and business optimism weakened amid persistent domestic and global uncertainties.

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Who’s Who

Caixin Insight Group: The Caixin Insight Group is an independent organization that sponsors surveys to provide snapshots of China's economy. Their Caixin China General Manufacturing Purchasing Managers’ Index (PMI) is an early monthly indicator of economic activity, offering insights into sectors like manufacturing. Wang Zhe, a senior economist at Caixin Insight Group, frequently analyzes and comments on the survey's findings.

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What Happened When

July 2023：: In May 2025, new export orders in China fell at the sharpest pace since this date.

September 2024：: Manufacturers’ purchases in June 2025 reached their lowest level since this date.

November 2024：: Manufacturing output in June 2025 expanded at its fastest pace since this date.

May 2025：: China’s manufacturing sector experienced a brief contraction; the Caixin PMI was 48.3.

June 2025：: China’s manufacturing sector returned to expansion, as indicated by the Caixin China General Manufacturing Purchasing Managers’ Index (PMI) rising to 50.4.

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