Overview
- Manufacturing activity expanded in June across several major economies, with PMI readings showing growth driven largely by export demand rather than broad domestic strength.
- China's official manufacturing PMI rose to 50.3 in June as demand for AI hardware and semiconductors and pre‑tariff front‑loading pushed high‑tech output and new export orders higher.
- U.S. factories extended their run of growth to a sixth month with an ISM reading of 53.3 in June, and manufacturers reported a marked easing in input price pressure compared with May.
- Supply chains remain strained because of Middle East shipping disruptions, which lengthened supplier delivery times and prompted firms to stockpile inventories, mechanically boosting some PMI gauges.
- Recovery remains uneven: India’s PMI moderated in June to 54.2 with weaker new and export orders, Pakistan and South Africa recorded fragile or contracting activity, and this split raises risks for jobs, pricing and policy.