Multiple outlets report that China’s factory activity declines in July and moves into contraction, citing an official purchasing managers’ index (PMI) survey alongside a private gauge. Bloomberg and other reports say the slowdown is most evident among export-oriented manufacturing firms. The official factory PMI is described as falling into contraction for the first time in about five months, with the July composite PMI reaching a multi-year low as both manufacturing and services activity weaken. Channel NewsAsia and Yahoo News attribute part of the weakening to sagging demand. ABC News and The Independent highlight that the contraction in factory activity is unexpected and represents the first contraction since a prior five-month period of expansion.
Financial Times adds that non-manufacturing activity also shows a sharp decline in July, reinforcing the broader soft patch across the economy rather than a manufacturing-only issue. Seeking Alpha similarly reports that both factory and services activity shrink, pointing to a deterioration in the overall activity readings for the month. While the specific index levels vary by source and gauge, the direction of change is consistently reported as weaker activity in July.
