The Chinese mainland's manufacturing PMI fell to 49.4 in July, indicating a contraction in the sector. Despite ongoing economic growth and an optimistic business outlook, seasonal factors such as heat waves and floods have posed challenges to further expansion.
The National Bureau of Statistics (NBS) reported that the composite PMI output index was 50.2 this month, slightly down from 50.5 in June. Additionally, the PMI for the service and construction sectors combined decreased to 50.2.
A PMI reading above 50 signifies expansion, while below 50 indicates contraction. NBS senior statistician Zhao Qinghe noted that the manufacturing sector faced a slightly lower business climate due to the traditional slack season, insufficient market demand, and extreme weather conditions. He also added that high temperatures and floods negatively impacted the construction sector.
Reference(s):
cgtn.com
