Factory activity in China continues to improve after the ceasefire with Washington

Factory activity in China improved the second consecutive month, but it remained within the scope of deflation, at a time when trade began to recover after the ceasefire in the Customs War was announced with the United States, while poor domestic demand is still a burden on the economy. The official purchasing managers of the manufacturing sector scored 49.7 points in June, compared to 49.5 points in May, which bypassed the average expectations of a “Bloomberg” survey. Any level below 50 points is an indication of shrinkage. On the other hand, the non -manufacturing activities, which include construction and services sectors, rose to 50.5 points compared to 50.3 in the previous month, according to the National Bureau of Statistics on Monday, to exceed the expectations of 50.3 points. The external yuan rose 0.2% after the data was released, reaching 7.1626 per US dollar. Futures for Chinese government bonds also dropped 0.6%30 years, which is the biggest loss in a month, while traders have reduced their bets on more cash facilitation. The manufacturing requests expanded in the manufacturing sector expanded the new request index for the first time in three months, while the recruitment index deteriorated again after a minor improvement in May. The survey showed that more than half of the 21 industries included in the expansion range were included. “The activities of industrial production have accelerated and the demand in the market has accepted,” Zhao Chenga, main statistics at the National Bureau or Statistics, said in a statement. Acquisition Managers Index data is the first official lecture to be released each month to give a quick overview of the performance of the Chinese economy. The last lecture indicates the first full month after the Beijing and Washington agreement over a 90 -Days trading resistance. External demand, which represents about 40% of economic growth in the first quarter, contributes to the compensation for the weakness of consumer spending in the country. However, it requires China to achieve stable relations with its commercial partners, especially the United States, with which Beijing recently reached a final trade framework negotiated in Geneva. The agreement determined the codification of the conditions reached in the commercial discussions between the two countries, including Beijing’s commitment to provide the rare soil minerals used in industries ranging from wind turbines to jet aircraft. Despite this improvement, the future of the manufacturing sector in China remains during the rest of the year, in light of the ambiguity of export prospects and the continued absence of a permanent trade agreement. Improving confidence has increased several international banks, including ‘Bank of America’ and ‘City Group’, its expectations for the growth of the Chinese economy in 2025, against the background of improving confidence as a result of the Customs Wear. However, the economists of the polls “Bloomberg” are expected to grow by 4.5% this year, which is much lower than the official purpose of about 5%. Raymond Young, chief economist of the major China in the ‘Australia and New Zealand banking group’, said the manufacturing production index reached its highest level in three months, with 51 points, indicating that industrial production would be “not bad in June.” He added: “The dilemma facing policymakers today is not growing, but rather negative inflation and unemployment,” emphasizes: “I’m not worried about the gross domestic product of China.” David Birdo, US President Donald Trump’s envoy in China, warned his side that the United States wanted to restructure its trade relations with China and the world by restoring many important supply chains to the US interior. The US Ambassador has indicated that the United States leaders “neglected deep erosion in many strategic industries”, in an indication that trade tensions can continue between the two countries.