July manufacturing and services PMIs fell below 50, signaling contraction and missing market expectations of stability.
China’s official manufacturing PMI dropped to 49.2 in July from 50.3 in June, falling short of the 50.0 consensus forecast. The non-manufacturing PMI also declined to 49.0, down from 50.2 in the prior month and below the expected 50.0 print.
The readings mark the first contraction in factory activity since February and the weakest services sector performance since December. Analysts had anticipated a flat reading, reflecting steady economic momentum amid post-pandemic recovery efforts.
The Australian Dollar, a proxy for China-linked assets, dipped 0.04% to 0.7026 USD following the release, reflecting cautious sentiment toward regional growth prospects.