China Factory Activity Expands for First Time in Five Months

China’s official manufacturing PMI rose to 50.6 in June, moving back above the 50 threshold that separates expansion from contraction for the first time since January.

New export orders posted their strongest reading in over a year, helped by front-loaded shipments ahead of a pending review of US tariff exemptions later this year.

Steel and cement producers reported modest output increases, though property-linked demand remains soft, keeping a lid on broader industrial commodity consumption.

Economists said the improvement is encouraging but cautioned that a sustained recovery will depend on stronger domestic consumption rather than export front-running alone.

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