China’s Manufacturing PMI Falls Below 50 in July Amid Heatwaves and Floods

China's economic engine kept chugging along in July, with the composite Purchasing Managers' Index (PMI) holding steady at 50.2, despite a slight dip from June's 50.5.

However, the manufacturing sector faced challenges, as its PMI slid to 49.4—falling below the 50-point mark that signals expansion. Meanwhile, the combined PMI for services and construction remained on the positive side at 50.2.

Seasonal factors played a role in this month's figures. Traditional slack seasons, insufficient market demand, and extreme weather conditions like heatwaves and floods put a damper on growth. NBS senior statistician Zhao Qinghe highlighted that the soaring temperatures and excessive rainfall also impacted the construction sector, making it a tough month for manufacturers.

Despite these hurdles, the overall outlook remains optimistic as businesses navigate through these seasonal and environmental challenges, striving to keep the nation's economic growth on track.

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China's manufacturing PMI down to 49.4 in July

cgtn.com