CHINA INDUSTRIAL INDICATORS: Sequential stabilization, FA strength continued

Research evidence excerpt

CHINA INDUSTRIAL INDICATORS: Sequential stabilization, FA strength continued

Equity Research

15 July 2026 | 7:05PM HKT

CHINA INDUSTRIAL INDICATORS

Sequential stabilization, FA strength continued

DuKey readings of the month accelerated further to +45%/+28% yoy/mom in June Jacqueline | +852-2978-1783

June’s economic data points to a still-soft macro (vs. +40%/+26% yoy/mom in May). At the industry data jacqueline.du@gs.comGoldman Sachs (Asia) L.L.C.

backdrop but with modest sequential stabilization in points level, this is supported by industrial robot

manufacturing activity. Manufacturing FAI remained in production sustaining strong growth at +28%/+9%

negative territory but narrowed to -2.8% yoy in June (vs. yoy/mom in June (vs. +28%/+8% yoy/mom in May);

-4.1% in May), while manufacturing PMI edged back into machine tool production accelerating to +18%/+13%

expansion at 50.3 (vs. 50.0 in May). Overall, the key yoy/mom in June (vs. +11%/-11% yoy/mom in May),

message is that high-tech and automation-related materially stronger than past five-year June seasonality

fundamentals held steady, with broader FA industry data of -12% mom; and Japan machine tool export orders to

strengthening against May giving stronger support to the China remaining strong at +66% yoy in May. Haitian

view that the FA cycle remains constructive, particularly in total orders also returned to LDD yoy growth in June

discrete automation. Select end-markets that had been after a LSD decline in May. Overall, domestic

subdued also saw some sequential improvement into automation data points look stronger than

June, though the recovery is importantly selective: autos export-oriented industrial product trends: contrasting