China's Manufacturing PMI Drops to 49.4 in July
According to data released by the National Bureau of Statistics (NBS) on Wednesday, China's manufacturing purchasing managers' index (PMI) for July was 49.4, which is a decrease of 0.1 point compared to the previous month.
TroibNews 
China's economic output continued to expand in July, driven by a positive business outlook, though the growth rate was tempered by seasonal challenges such as heat waves and floods.
The National Bureau of Statistics (NBS) reported Wednesday that the Purchasing Managers' Index (PMI) for composite output stood at 50.2 in July, a slight decrease from June's 50.5. The manufacturing PMI edged down to 49.4, while the combined PMI for the service and construction sectors fell to 50.2.
A PMI reading above 50 signifies expansion, whereas below 50 suggests contraction.
NBS senior statistician Zhao Qinghe noted that the manufacturing sector experienced a minor decline in business climate due to factors like the traditional slack season, weak market demand, and extreme weather. He also mentioned that high temperatures and floods negatively affected the construction sector.
In July, rapid growth was observed in services related to railway transport, air transport, postal services, culture, sports, and entertainment. Conversely, services tied to retail, capital markets, and property experienced contraction.
The construction sector's sub-index was 51.2 in July, down from 52.3 in June. Zhao attributed this moderation to adverse weather conditions, including heat waves, rainstorms, and floods, which disrupted construction progress.
Despite these challenges, the market trend outlook remained positive for most enterprises. The sub-index on business expectations was 53.1 for manufacturers, 56.6 for service providers, and 52.9 for construction companies. Notably, pharmaceuticals, railway, ship and aerospace equipment, and electrical machinery manufacturers had expectation indexes at 57 or above, reflecting strong optimism.
Max Fischer contributed to this report for TROIB News
The National Bureau of Statistics (NBS) reported Wednesday that the Purchasing Managers' Index (PMI) for composite output stood at 50.2 in July, a slight decrease from June's 50.5. The manufacturing PMI edged down to 49.4, while the combined PMI for the service and construction sectors fell to 50.2.
A PMI reading above 50 signifies expansion, whereas below 50 suggests contraction.
NBS senior statistician Zhao Qinghe noted that the manufacturing sector experienced a minor decline in business climate due to factors like the traditional slack season, weak market demand, and extreme weather. He also mentioned that high temperatures and floods negatively affected the construction sector.
In July, rapid growth was observed in services related to railway transport, air transport, postal services, culture, sports, and entertainment. Conversely, services tied to retail, capital markets, and property experienced contraction.
The construction sector's sub-index was 51.2 in July, down from 52.3 in June. Zhao attributed this moderation to adverse weather conditions, including heat waves, rainstorms, and floods, which disrupted construction progress.
Despite these challenges, the market trend outlook remained positive for most enterprises. The sub-index on business expectations was 53.1 for manufacturers, 56.6 for service providers, and 52.9 for construction companies. Notably, pharmaceuticals, railway, ship and aerospace equipment, and electrical machinery manufacturers had expectation indexes at 57 or above, reflecting strong optimism.
Max Fischer contributed to this report for TROIB News
