July PMI readings for China’s manufacturing and services sectors fell below the 50-point threshold, indicating economic contraction.
China’s manufacturing PMI declined to 49.2 in July from 50.3 in June, marking the first contraction since April. The non-manufacturing PMI also eased to 49.0, down from 50.2 in the prior month, according to official data released Friday.
The readings missed market expectations of 50.0 for manufacturing and 50.1 for services. A PMI below 50 signals contraction, while readings above indicate expansion. The last contraction in manufacturing was observed in April, when the index stood at 49.2.
The data reflects weakening demand and ongoing economic challenges in China, with both sectors slipping into contraction territory simultaneously for the first time since February 2020.