China's factory activity grows faster than expected in June on tech export demand
China's manufacturing sector grew faster than expected in June, official data showed. Surging demand for artificial intelligence technology helped offset the drag from Middle East turmoil, supporting the country's export engine.
China's manufacturing sector grew faster than expected in June, according to official data. The purchasing managers' index came in above economists' forecasts, suggesting the country's production engine held up through the year.
The figures showed that global demand for artificial intelligence technology was a key driver supporting exports. That strength helped partly offset the drag that Middle East turmoil has placed on foreign trade, steadying overall output.
Analysts said demand for AI hardware has become an important source of growth for Chinese manufacturers. However, swings in global demand and trade tensions remain the main risks to the outlook. Investors will watch upcoming data to gauge whether the trend can be sustained into the second half of the year, with chip and electronics orders in focus.
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