Global Finance News
31 Jul 2026, 08:58
China's Manufacturing Activity Contracts Again as PMI Misses Expectations
China's manufacturing sector slipped back into contraction in July, adding to concerns over the strength of the country's industrial recovery and highlighting persistent weakness in domestic and external demand.
The official Manufacturing Purchasing Managers' Index (PMI) fell to 49.2 in July, below economists' expectations of 50.1 and down from 50.3 in June. A reading below 50 signals contraction in manufacturing activity, indicating that factory conditions weakened after briefly returning to expansion in the previous month.
The weaker-than-expected reading suggests Chinese manufacturers continue to face headwinds from subdued domestic consumption, soft export demand and ongoing pressures in the property sector. The decline also raises questions about the sustainability of China's economic recovery during the second half of the year.
China's manufacturing sector slipped back into contraction in July, adding to concerns over the strength of the country's industrial recovery and highlighting persistent weakness in domestic and external demand.
The official Manufacturing Purchasing Managers' Index (PMI) fell to 49.2 in July, below economists' expectations of 50.1 and down from 50.3 in June. A reading below 50 signals contraction in manufacturing activity, indicating that factory conditions weakened after briefly returning to expansion in the previous month.
The weaker-than-expected reading suggests Chinese manufacturers continue to face headwinds from subdued domestic consumption, soft export demand and ongoing pressures in the property sector. The decline also raises questions about the sustainability of China's economic recovery during the second half of the year.
