China’s manufacturing sector falters in July as growth momentum cools
Beijing faces renewed pressure to ramp up support as PMI falls to 49.2, a day after leadership signalled it would accelerate fiscal spending
China’s factory activity has slipped into contraction in July, ending a four-month growth streak as weaker new orders and persistent demand challenges highlight the need for further policy support from Beijing, analysts said.
The monthly index measures factory activity through surveys of supply chain managers across a variety of sectors. A reading above 50 indicates expansion, while one below 50 signals contraction.
The new orders subindex, a gauge of manufacturing demand, fell to 48.5 in July from 51.2 in June, while a separate measure for new export orders also slipped into contraction territory, falling to 49.6 this month compared with 50.1 a month earlier.
“Under the combined impact of a high comparison base from recent rapid growth and the traditional off-season in select manufacturing sectors ... factory activity cooled from last month ... [as] both production and market demand eased,” said Huo Lihui, a statistician at the NBS, in a statement.
Analysts said the July PMI marked a “sharp fall” and underscored the growing need for Beijing to roll out supportive policies.