Is China’s manufacturing comeback a blip, or a bellwether? While U.S. and Asian factory activity remains soft amid tariff drag, China’s private PMI bucked expectations, rising to 50.5—its highest in five months and confounding calls for broader contraction. The upturn was powered by new export orders (especially to non-U.S. markets), while official data still paints a more muted, domestic-demand-challenged picture.
- Japan, South Korea, and Taiwan: PMIs remain below 50, marking ongoing contraction thanks to tariff headwinds and sagging global demand.
- China’s rally: Driven by a 90-day tariff truce with the U.S., but profit margins and factory jobs continue to slide.
So, are “patchy” improvements in China evidence of resilience—or just another temporary trade-fueled escape from a deeper slowdown?
