China Factory Activity Ticks Up, but Deflation Risks Squeeze Profits
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China’s manufacturing activity expanded at a slightly faster pace in June, aided by domestic stimulus and easing trade tensions, even as tumbling factory-gate prices highlighted an ongoing profit squeeze.
The official manufacturing purchasing managers’ index (PMI) rose to 50.3 from 50 in May, data from the National Bureau of Statistics showed Tuesday.
The broader composite PMI, which includes the services sector, ticked up to 50.6, marking its highest level this year.
A rebound in total new orders drove the manufacturing uptick. However, production continued to outpace demand. Consequently, factories remained cautious about hiring, with the employment gauge slipping to 48.5.
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