Interpretation from the National Bureau of Statistics: Manufacturing PMI rises to expansion territory in June, non-manufacturing PMI continues to expand.

Manufacturing PMI Rises to Expansion Territory in June; Non-Manufacturing Business Activity Index Continues to Expand

——Interpretation by Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics, on China's Purchasing Managers' Index for June 2026

On June 30, 2026, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China's Purchasing Managers' Index. In response, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics, provided an interpretation.

In June, the Manufacturing Purchasing Managers' Index stood at 50.3%, up 0.3 percentage points from the previous month, returning to expansion territory; the Non-Manufacturing Business Activity Index and the Composite PMI Output Index were 50.2% and 50.6%, respectively, both up 0.1 percentage points from the previous month, indicating a rebound in China's economic level.

I. Manufacturing Purchasing Managers' Index Rises to Expansion Territory

In June, the manufacturing PMI was 50.3%, indicating faster production and business activities in the manufacturing sector compared to the previous month.

(1) Simultaneous expansion in both production and demand. The Manufacturing Production Index was 51.4%, up 0.2 percentage points from the previous month, with accelerated expansion in corporate production activities; the New Orders Index rose to expansion territory, reaching 51.2%, up 1.3 percentage points from the previous month, indicating improved market demand. By industry, the Production Index and New Orders Index for industries such as agricultural and sideline food processing, special equipment, and computer, communication, and other electronic equipment were both above 54.0%, showing strong production and demand in related industries; for industries such as chemical fiber, rubber, and plastic products, and ferrous metal smelting and rolling processing, both indices remained below the critical point, indicating insufficient supply and demand on both sides.

(2) PMI for large and medium-sized enterprises both above the critical point. The PMI for large manufacturing enterprises was 50.7%, continuing to expand; the PMI for medium-sized enterprises was 50.5%, up 1.9 percentage points from the previous month, with a significant rebound in the market conditions; the PMI for small enterprises was 48.2%, with a decline in the market conditions.

(3) High-tech manufacturing continues to improve. The PMI for high-tech manufacturing was 53.5%, up 0.6 percentage points from the previous month, significantly higher than the overall manufacturing level, indicating sustained improvement in high-end manufacturing development and further enhancement of its leading role; the PMI for equipment manufacturing and consumer goods industries were 52.5% and 50.2%, respectively, up 0.4 and 0.5 percentage points from the previous month, showing increased industry performance; the PMI for high-energy-consuming industries was 47.1%, flat from the previous month.

(4) Market expectations have rebounded. The Manufacturing Production and Business Activity Expectations Index was 54.3%, up 0.4 percentage points from the previous month, indicating increased corporate confidence in the market. By industry, the Production and Business Activity Expectations Index for special equipment, railway, shipbuilding, aerospace and other transport equipment, and electrical machinery and equipment were all in the high performance range above 57.0%, with related companies being more optimistic about industry development.

II. Non-Manufacturing Business Activity Index Edges Up

In June, the Non-Manufacturing Business Activity Index was 50.2%, up 0.1 percentage points from the previous month, indicating a rebound in the non-manufacturing market conditions.

(1) Service sector expansion accelerates. The Service Business Activity Index was 50.4%, up 0.1 percentage points from the previous month, with an increase in the market conditions. By industry, the Business Activity Index for telecommunications, broadcasting, television, and satellite transmission services, internet software and information technology services, monetary financial services, and insurance were all in the high performance range above 55.0%, with rapid growth in business volume; the Business Activity Index for air transport and real estate continued to remain below the critical point. The Service Business Activity Expectations Index was 56.0%, up 0.6 percentage points from the previous month, indicating improved expectations for market development among enterprises.

(2) Construction industry market conditions improve. The Construction Business Activity Index was 49.0%, up 0.2 percentage points from the previous month, with a slight rebound in the market conditions. The Construction Business Activity Expectations Index was 51.1%, continuing to remain in expansion territory.

III. Composite PMI Output Index Continues to Expand

In June, the Composite PMI Output Index was 50.6%, up 0.1 percentage points from the previous month, indicating a slight acceleration in the overall expansion of production and business activities of Chinese enterprises. The Manufacturing Production Index and Non-Manufacturing Business Activity Index, which constitute the Composite PMI Output Index, were 51.4% and 50.2%, respectively.

(Editor: Wen Jing)

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                                                            PMI