FX.co ★ China Factory Activity Unexpectedly Grows

The Caixin China General Manufacturing PMI experienced an unexpected increase to 50.4 in June 2025, up from 48.3 in May, which had represented the sharpest decline since September 2022. This figure surpassed market expectations, which predicted a reading of 49. The improvement was bolstered by a renewed climb in production, spurred by an uptick in new orders. Growth in output reached its fastest pace since last November, aided by a fresh surge in new orders amid enhanced trade conditions and promotional efforts. Nonetheless, external demand remained subdued, with new export orders declining for a third consecutive month, albeit at a significantly reduced pace compared to May.