China Manufacturing Growth Eases Slightly in June, Caps Strongest Quarter Since 2020

China’s manufacturing sector expanded at a slightly slower pace in June, although factory activity remained firmly in expansion territory, concluding what has been the country’s strongest manufacturing quarter since late 2020.

The RatingDog China Manufacturing PMI edged down to 51.7 in June from 51.8 in May, reaching a three-month low but remaining above the market consensus forecast of 51.6.

A reading above 50 indicates expansion in manufacturing activity, while a reading below that level signals contraction.

Despite the modest decline, the June survey indicated that manufacturing output and new orders continued to grow, supporting overall industrial activity during the second quarter. The latest reading suggests that China’s factory sector maintained positive momentum, even as the pace of expansion moderated slightly from the previous month.

The June data concludes the strongest quarterly performance for China’s manufacturing sector since late 2020, reflecting sustained production growth and continued demand across parts of the industrial economy.

Additional manufacturing indicators and upcoming economic releases will provide further insight into whether factory activity maintains its current pace during the second half of 2026.