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China’s Factory Activity Unexpectedly Slips Into Contraction in July
The official reading missed forecasts as U.S.-bound shipments fell and factory employment weakened, underscoring pressure on Beijing to support demand.
- China's official manufacturing PMI fell to 49.2 in July from 50.3 in June, the National Bureau of Statistics said Friday, dropping below the 50 threshold that separates expansion from contraction.
- The downturn follows the unwinding of an export rush that powered second-quarter growth, as American-bound shipments fell outright for the first time in several months.
- Factory conditions worsened as the sub-index for new orders dropped to 48.5 in July, the lowest since 2023, while China Beige Book reported job growth deteriorated across all sectors.
- Top officials at a Politburo meeting on Thursday pledged to "roll out pragmatic and effective new policies in a timely manner" to stabilize the economy and boost domestic consumption.
- Economic growth slowed to 4.3% in the April-June quarter, the weakest performance in more than three years, falling short of the official full-year target range of 4.5% to 5%.
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In China, the official purchasing manager index for industry falls under the brand that separates growth from decline. Services and construction are also worse off, with weak data increasing the pressure on Beijing to boost domestic demand.
China factory activity contracts in July, signalling fresh pressure on growth
China's official factory activity slipped into contraction in July after five months of expansion. The weaker PMI reading highlights mounting pressure on growth despite export support and fresh promises to spur consumption.
·Noida, India
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Coverage Details
Total News Sources27
Leaning Left9Leaning Right6Center4Last UpdatedBias Distribution47% Left
Bias Distribution
- 47% of the sources lean Left
47% Left
L 47%
C 21%
R 32%
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