Activity at China’s Factories Continues to Decline Amid US Tariffs

The purchasing managers’ index offers a glimpse into activities at China’s factories after a temporary trade truce with Washington.

A worker polishes machinery at a workshop in Hangzhou, in Zhejiang Province, China, on June 6, 2025. STR/AFP via Getty Images

Activity at China’s factories remained in contraction for the third consecutive month in June, an official survey showed on June 30, adding to questions about the economy’s outlook under additional U.S. tariffs.

The official manufacturing purchasing managers’ index (PMI), which gauges sentiment among factory owners, increased marginally, coming in at 49.7, compared to May’s reading of 49.5, according to data released by the National Bureau of Statistics of China (NBS).