Chinese factory activity shrinks in July

Data from China's National Bureau of Statistics showed that factory activity contracted in July for the first time since February 2026, due to weak domestic demand and the impact of recent hurricanes that disrupted construction and service activities. The manufacturing Purchasing Managers' Index (PMI) fell to 49.2 points, below expectations, while the service and construction sector indices also declined, amid continued limited growth in new orders and exports. This reflects an economic slowdown and growth challenges in the second half of the year. However, some analysts remain optimistic, viewing this downturn as temporary, with the government calling for increased fiscal spending to support economic recovery.

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