Golden Financier
  • Investing
  • Stock
  • Latest News
  • Editor’s Pick
  • Economy

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Popular Topics
    • Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity
    • RBI delivers steepest rate cut in 5 years: experts weigh in on the possibility of more cuts
    • Musk, Trump dial back feud as White House aides push for truce
    • A new era in US politics? Donald Trump vs Elon Musk and the rise of platform power
    • Here’s why the Nifty 50 Index may surge after the RBI rate cut
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions
    Golden Financier
    • Investing
    • Stock
    • Latest News
    • Editor’s Pick
    • Economy
    • Stock

    China’s manufacturing PMI edges up despite ongoing trade tensions

    • June 2, 2025
    • admin

    China’s manufacturing PMI improved somewhat in May due to the resumption and frontloading of shipments to the US amid the 90-day tariff truce which will end in mid-August, Commerzbank AG said. 

    May saw an increase in the official manufacturing PMI to 49.5, up from April’s reading of 49.0, official data showed.

    In May, the production subindex rebounded to 50.7, exceeding the neutral 50 threshold after registering 49.8 in April.

    Source: Commerzbank Research

    Tensions rise despite truce

    New export orders saw improvement, increasing to 47.5 in May from April’s 44.7.

    Similarly, overall new orders experienced a rise, reaching 49.8 compared to the previous 49.2.

    “However, the subindex still remained in contraction territory, reflecting weakness in overall domestic and external demand,” Tommy Wu, senior economist at Commerzbank, said in a report.

    Exports should be supported by the tariff truce with the US for the 90-day period till mid-August. However, the two sides have been accusing each other of violating the truce agreement.

    Despite the tariff truce, US-China tensions are rising in other sectors.

    The Trump administration implemented several measures targeting China.

    These included revoking some Chinese student visas, limiting chip design software sales, and attempting to hinder global sales of AI chips from a major Chinese technology company.

    Recent comments from US Treasury Secretary Scott Bessent indicate that trade discussions between the two nations are currently in a state of slight standstill. 

    He noted the possibility of tariffs increasing once more in August should negotiations fail to advance.

    Services activity lacklustre

    China’s non-manufacturing PMI stayed in expansion mode at 50.3 in May, slightly lower than April’s 50.4, according to official figures.

    The construction PMI saw a slight decrease, moving from a previous value of 51.9 to 51, but it still held steady within the subindexes.

    Government investment in infrastructure contributed to this support.

    Driven by increased holiday spending during the Labour Day holiday in early May, the Services PMI saw a slight increase to 50.2, up from the previous reading of 50.1, Wu noted.

    “Nevertheless, such readings suggest domestic demand has remained rather soft despite this year’s policy focus to support consumption,” Wu said.

    Policy strength may depend on future tariffs

    Tariffs and declining exports are expected to significantly slow China’s economic growth in the latter half of this year and into 2026, according to Commerzbank. 

    Increased export costs from tariffs will likely reduce international demand and export volumes, negatively impacting the manufacturing sector and potentially employment. 

    Lower export earnings will affect China’s trade surplus and may decrease investment in export-oriented industries. 

    This combined effect is projected to moderate overall economic growth, potentially impacting domestic consumption and requiring government policy intervention.

    To bolster the economy, China’s government will persist in executing the policies established during the National People’s Congress annual meetings held in March.

    Beijing has indicated its readiness to implement further measures as necessary. 

    Wu said:

    We think this will depend on the future path of the tariffs.

    The post China’s manufacturing PMI edges up despite ongoing trade tensions appeared first on Invezz


    admin

    Previous Article
    • Stock

    Europe markets open: STOXX 600 dips 0.2% on renewed US tariff threats; auto sectors under pressure

    • June 2, 2025
    • admin
    View Post
    Next Article
    • Stock

    Wedbush reveals best AI stock picks for the second half of 2025

    • June 2, 2025
    • admin
    View Post

      Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


      By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
      Popular Topics
      • Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity
      • RBI delivers steepest rate cut in 5 years: experts weigh in on the possibility of more cuts
      • Musk, Trump dial back feud as White House aides push for truce
      • A new era in US politics? Donald Trump vs Elon Musk and the rise of platform power
      • Here’s why the Nifty 50 Index may surge after the RBI rate cut

      Input your search keywords and press Enter.