China’s manufacturing and non-manufacturing sectors contracted in July, signaling economic challenges ahead.

Economic Activity Declines in China’s Manufacturing and Non-Manufacturing Sectors

China’s manufacturing and non-manufacturing sectors experienced a contraction in July, driven by a decrease in market demand. Recent data from the National Bureau of Statistics highlights this trend.

Non-Manufacturing Sector Shows Weakness

The Purchasing Managers’ Index (PMI) for the non-manufacturing sector fell to 49 points in July, down from 50.2 points in June. Meanwhile, the manufacturing PMI registered at 49.2 points. These figures indicate a contraction in economic activity, as readings above 50 signify expansion, while those below indicate a decline.

Construction and Services Face Declines

The sub-index for construction activity dropped to 47 points, down from 49 points the previous month. Similarly, the services sector saw a decline, with its index falling to 49.3 points from 50.4 points.

New orders in both the construction and services sectors recorded 40.1 and 45.2 points, respectively, reflecting weak domestic demand in recent weeks. However, the construction activity expectations index rose to 51.8 points, while the services sector’s expectations remained stable at 56 points.

Composite Production Index Indicates Slowdown

The composite production index, which measures activity across both manufacturing and non-manufacturing sectors, stood at 49.3 points in July. This further underscores the slowing economic momentum in the world’s second-largest economy.

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