Chinese factory activity improves slightly with delay on tariffs, but still lags

Chinese factory activity improved somewhat in June after President Donald Trump agreed to delay imposing higher tariffs on imports from China for 90 days, but overall activity was still contracting, according to a survey released Monday.  The purchasing managers index, which reflects new orders and other measures, rose to 49.7 from 49.5 in May, the National Bureau of Statistics reported. That’s on a scale of 0 to 100 where 50 and above shows expansion.

Other reports showed similar trends in Japan and Korea.

Trump has said he’s not planning to extend the 90-day pause on tariffs on most nations beyond July 9. The delay for imposing much higher tariffs on China, agreed to in early May, expires about a month later. The hiatus for tariffs brought a revival of manufacturing activity as companies and individuals rushed to take advantage of lower import duties. But that mainly helped large manufacturers, with small and mid-size companies’ output still contracting. Hiring also fell.

Read more