China's Official Manufacturing PMI Fell to 5-Month Low in July
Activity of China's manufacturing sector fell more than expected in July. Official data from the Statistics Bureau showed that the official manufacturing PMI dropped to 51.2 in July from 51.5 in June, lower than the forecasts of 51.3 in July. It was also the lowest index reading since February but remained above the 50-point mark that separates growth from contraction for a 24th straight month.
Meanwhile, services PMI, covering services and construction which accounts for more than half of China’s economy, stood at 54, compared with 55 in June. The composite PMI, which covers both manufacturing and services activity, fell to 53.6 in July, from 54.4 in June.
The report notes that recently the decline in PMI is largely due to the growing trade tension between the US and China and the cyclical processes caused by the beginning of the traditional season, which is characterized by a decrease in the activity of Chinese enterprises. The index of activity of large enterprises of China fell to 52.4 in July from 52.9 in June. Activity of small enterprises decreased by 0.5 points, to the level of 49.3.