China's official June PMI readings, the strongest since December, suggest the country's economy has regained some momentum, Capital Economics says. Julian Evans-Pritchard, head of China economics, says the uptick in the official manufacturing PMI was driven by a rise in export orders, reinforcing China's continued dependence on exports and AI-related tech. Meanwhile, falling energy prices have pushed both input and output price indexes lower, indicating producer prices may be slipping back toward deflation. Evans-Pritchard says growth in the IT and telecom sectors remains particularly strong, supported by the AI boom, while the data suggest the construction sector is shedding fewer jobs. (jason.chau@wsj.com)