Official data: China’s manufacturing activities contracted for the third consecutive month in July
This prolonged contraction is attributed to several factors, including weak domestic demand, extreme weather conditions, and the traditional off-peak production season. These challenges have amplified calls for increased policy support from the government to stimulate economic activity.
China’s manufacturing sector experienced a third consecutive month of contraction in July 2024, according to the latest data from the National Bureau of Statistics (NBS). The official Purchasing Managers' Index (PMI) fell to 49.4, slightly down from June’s 49.5, and aligns with economist forecasts.
This prolonged contraction is attributed to several factors, including weak domestic demand, extreme weather conditions, and the traditional off-peak production season. These challenges have amplified calls for increased policy support from the government to stimulate economic activity.
Conversely, the new export orders index showed a marginal improvement, rising from 48.3 in June to 48.5 in July.
In addition, the non-manufacturing PMI, which captures sentiment in the service and construction sectors, recorded a slight decrease to 50.2 in July, compared to 50.5 in June. This decline reflects ongoing pressures in the construction sector, which has seen reduced activity amid weaker property market conditions.
Written by: Rochelle Nguyen