Key facts
- China's manufacturing PMI rose to 50.3 in June from 50.0 in May.
- China's factory activity expansion was driven by exports, especially AI hardware.
- Domestic demand in China remained subdued in June.
- Production outpaced orders in China, leading to cautious hiring.
- China's composite PMI reached a yearly high of 50.6.
- Japan's factory output increased by 0.5% in May.
- Japan's factory output missed forecasts for May.
- Japan's factory output decreased by 1.8% year-on-year in May.
- Argentina's economic activity grew by 1.6% in April.
- Argentina's economic growth in April fell short of the 2.2% projection.
- Argentina's mining and agriculture sectors saw gains in April.
- Argentina's manufacturing and commerce sectors declined in April.
China's manufacturing sector experienced a return to expansion in June, with the official Purchasing Managers' Index (PMI) reaching 50.3, an increase from May's reading of 50.0. This growth was primarily fueled by a significant boost in exports, particularly for AI-related hardware. Despite the positive export performance, domestic demand within China remained subdued. Production levels increased more rapidly than new orders, suggesting a cautious outlook among manufacturers, which was reflected in restrained hiring practices. The composite PMI for China also saw an uptick, reaching a yearly high of 50.6.
In contrast, Japan's factory output showed a more modest increase of 0.5% in May compared to the previous month. This figure fell short of market expectations, which had predicted a 1.1% rise. On a year-on-year basis, Japan's factory output actually decreased by 1.8%, also missing forecasts. Argentina's economic activity presented a mixed picture in April, growing by 1.6%. This growth rate was lower than the 2.2% anticipated by analysts. While the mining and agriculture sectors saw gains, these were counteracted by declines in manufacturing and commerce, indicating an uneven economic recovery influenced by President Javier Milei's fiscal policies.