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المشهد العربي
China's Factory Activity Shrinks in July
China experienced an unexpectedly sharp decline in factory activity in July, recording its lowest levels since February of this year, raising concerns about the strength and pace of the country's economic recovery. The manufacturing Purchasing Managers' Index (PMI) fell to 49.2 points, the non-manufacturing index dropped to 49.0 points, and the services activity index declined to 49.3 points—all mostly below the 50-point threshold that separates growth from contraction. The National Bureau of Statistics attributed the decline to harsh weather conditions, including high temperatures and heavy rains, which led to a drop in construction activity to its lowest level since early 2020. In response, the Chinese government pledged to increase spending to mitigate the effects without revealing any exceptional incentives, reflecting the deteriorating economic performance and potential deflation risks in the world's second-largest economy.
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