China factory activity contracts as broader PMI falls
China's factory activity contracted in July, with the official manufacturing purchasing managers' index falling to 49.2, National Bureau of Statistics data showed Friday.
The reading put the closely watched gauge of industrial health below the 50 mark that separates expansion from contraction. It was down from 50.3 in June and below the 50.1 expansion forecast in a Bloomberg survey of economists.
The official non-manufacturing PMI, which measures activity in sectors including services and construction, also fell to 49.0 in July, the NBS data showed. That marked the most pronounced contraction in more than three years.
NBS statistician Huo Lihui said in a statement that the reading indicated “a decline in the non-manufacturing sector's prosperity level” in July.
The figures come as China's leaders try to revive domestic demand in the world's second-largest economy. According to state news agency Xinhua, President Xi Jinping acknowledged “difficulties and challenges” facing the economy one day earlier and said China should improve the effectiveness of macroeconomic policies while focusing on the potential of domestic demand in the second half of the year.
Update
China's official manufacturing PMI was down from 50.3 in June.
The official non-manufacturing PMI fell to 49.0 in July.
The non-manufacturing contraction was described as the most pronounced in more than three years.
NBS statistician Huo Lihui said the July reading indicated a decline in the non-manufacturing sector's prosperity level.
President Xi Jinping acknowledged economic difficulties and challenges one day earlier and called for more effective macroeconomic policies and stronger domestic demand, according to Xinhua.
Source note: AFP news report published on 31 July 2026 at 02:29:29 UTC.
Source
AFP news report published on .