China’s manufacturing activity dipped in July
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The news: China’s manufacturing activity for July unexpectedly fell month on month amid seasonal production slowdowns as well as high temperatures and flooding in some regions, according to the latest figures released by the country’s National Bureau of Statistics.
The numbers: China’s official purchasing managers’ index (PMI) for manufacturing fell to 49.3% in July, down from 49.7% in the previous month. The median estimate of economists surveyed by Bloomberg was that the figure would remain at 49.7%.
The non-manufacturing purchasing managers’ index, which captures construction and services activity, fell to 50.1% from 50.5% in the previous month. Meanwhile, the composite index fell to 50.2% from 50.7%.
The context: National Bureau of Statistics Service Industry Survey Center senior statistician Zhao Qinghe said the decline in manufacturing activity compared to the previous month was partly due to seasonal slowdowns as well as adverse factors like high temperatures and flooding.
Chinese gross domestic product data indicated that the economy and exports were showing resilience in the first half of the year, but July data regarding cargo throughput released last week hit a three month low suggesting a slowdown in trade after historic highs in May and June.
The sources: National Bureau of Statistics of China, Bloomberg , Bloomberg
