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China factory activity slips into contraction in July, PMI at 49.2
The official NBS Manufacturing PMI fell from 50.3 to 49.2, and the new orders index dropped to 48.5, signaling renewed weakness in domestic demand.
China’s official manufacturing data showed a renewed contraction in July, adding to concerns that the second-quarter recovery is losing momentum. According to Action Forex’s coverage of the NBS release, the NBS Manufacturing PMI fell to 49.2 from 50.3, below market expectations of 49.9 and the lowest reading since February.
The report pointed to broad-based deterioration. Action Forex cited declines in production, with the production index falling to 49.9, and new orders, where the new orders index dropped to 48.5, indicating factories faced a renewed loss of domestic demand.
The NBS analysis also highlighted weakness in exports and business planning. New export orders weakened to 49.6, while purchasing activity, imports, and order backlogs deteriorated, as manufacturers became more cautious about production plans.
Beyond manufacturing, the momentum also faded across the services and construction side. Action Forex reported the official non-manufacturing PMI slid to 49.0 from 50.2, and said the surveys suggest a broad loss of economic momentum into the start of the third quarter, with policymakers potentially needing more support for domestic demand.