China PMIs Fall Below 50 in July as Construction Gauge Sinks to 47
Updated
Updated · Financial Times · Jul 31
China PMIs Fall Below 50 in July as Construction Gauge Sinks to 47
3 articles · Updated · Financial Times · Jul 31
Summary
49.2 manufacturing PMI and 49.0 non-manufacturing PMI pushed both official gauges into contraction in July, with factory activity falling for the first time in five months.
47.0 construction activity — the weakest since early 2020 — dragged on services and building, with the statistics bureau citing high temperatures, heavy rains and floods.
4.3% second-quarter GDP growth already missed Beijing’s target, and weaker retail sales, investment and a prolonged property slump are adding to pressure on confidence and demand.
Thursday’s Politburo meeting pledged faster fiscal spending but no major stimulus, increasing pressure on local governments as economists warn the slowdown could extend into the second half.