China factory activity grows faster than expected in June on tech export demand

LIANYUNGANG, CHINA - JUNE 28: An employee works on the carbon fiber production line at the Lianyungang base of CNBM subsidiary Zhongfu Shenying Carbon Fiber Co., Ltd. on June 28, 2026 in Lianyungang, Jiangsu Province of China. Wang Jianmin | Visual China Group | Getty Images China's manufacturing activity picked up faster than expected in June buoyed by strong demand for high-tech exports amid global AI boom. The official purchasing managers' index edged up to 50.3 in June, beating economists' forecast of 50.1, returning to the expansionary territory above the 50-point threshold. The index stood at 50 in May. The nonmanufacturing gauge, which tracks construction and services activity, rose to 50.2 from 50.1 in May, according to data released Tuesday by the National Bureau of Statistics. China's manufacturing engine has remained resilient this year, with surging investment in artificial intelligence offsetting the export drag from turmoil in the Middle East, even as domestic demand remains weak. The world's second-largest economy showed signs of recovery in June after two months of sluggish growth, with manufacturing activity and retail sales rebounding, according to China Beige Book , a private research firm that surveys 1,321 Chinese businesses. Exports remained a bright spot with U.S. importers rushing to bring forward shipments after President Donald Trump's meeting with Chinese leader Xi Jinping in May set relations on a steady footing. …