China’s factory activity shrank for the third consecutive month in July, while the non-manufacturing sector expanded at a slower pace, official data showed on Wednesday.
Data from the National Bureau of Statistics (NBS) showed that China’s official purchasing managers index (PMI) for the manufacturing sector stood at 49.4 in July, down from 49.5 in June. This is below the 50-point mark that separates growth from contraction.
Zhao Qinghe, an NBS statistician, explained that decline in the official manufacturing PMI was due to July being the traditional offseason for production. Other contributing factors included insufficient demand and extreme weather in certain regions, such as heatwaves and floods.
The sub-index for production was 50.1 in July versus 50.6 in June, while the gauge for new orders came in at 49.3 in July, down from 49.5 in June, the NBS reported.
China’s non-manufacturing PMI, which includes subindexes for service sector activity and construction, came in at 50.2 in July, down from 50.5 in June. The country’s official composite PMI, which encompasses both manufacturing and non-manufacturing activities, dropped from 50.5 in June to 50.2 in July.
Despite these declines, NBS data showed manufacturers remain optimistic, with the confidence with the gauge for manufacturers’ expectations for their production and operation standing at 53.1 in July, though slightly down from 54.4 in June.
ouyangshijia@trulynews.cn