Chinese factory activity declines in July
Factory and service activity in China unexpectedly declined in July, with the manufacturing Purchasing Managers' Index (PMI) dropping to 49.2 points, the lowest level since February 2026, indicating economic contraction due to weak domestic demand and the impact of hurricanes on the construction and service sectors. Additionally, the non-manufacturing PMI fell to 49.0, and the composite index to 49.3, amid declining new orders and weakened performance in wholesale, real estate, and financial services sectors. This downturn is partly attributed to the effects of hurricanes that halted activities, along with persistent weak domestic demand and limited decline in export orders. Nonetheless, manufacturers and experts remain cautiously optimistic that the slowdown is temporary, supported by ongoing efforts by local governments to stimulate financial growth.
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