China’s manufacturing purchasing managers’ index fell to 49.2% in July from 50.3% in June, moving below the 50% level that separates month-on-month expansion from contraction. The index declined by 1.1 percentage points, the National Bureau of Statistics of China reported.
The manufacturing production index fell by 1.5 percentage points to 49.9%, while the new orders index dropped by 2.7 percentage points to 48.5%. The raw-material inventory index edged down to 48.3%, and the supplier delivery time index declined to 49.5%.
The manufacturing employment index rose by 0.5 percentage points to 49.0%. The business expectations index slipped to 54.1% from 54.3%, remaining above the 50% level.
Large manufacturers recorded a PMI of 49.5%, down by 1.2 percentage points. The index for medium-sized companies fell by 0.8 percentage points to 49.7%, while the index for small companies declined by 0.8 percentage points to 47.4%.
Equipment manufacturing and high-technology manufacturing remained above the expansion threshold, with PMI readings of 51.4% and 53.3%, respectively. Consumer goods manufacturing fell to 47.8%, while energy-intensive manufacturing recorded a reading of 47.0%.
Production and new orders indexes for general equipment and computer, communications and electronic equipment manufacturing remained above 53.0%. Both indexes stayed below 50% in nonmetallic mineral products, ferrous metal processing and automobile manufacturing.
The index for raw-material purchase prices declined to 53.2%, while the factory-gate price index fell to 47.8%. Both indexes recorded their fourth consecutive monthly decline. The purchasing volume index dropped to 49.4%.
New export orders fell to 49.6% from 50.1%, while imports declined to 47.5% from 49.6%. Finished goods inventories rose to 48.6% from 47.7%, and outstanding orders decreased to 45.8% from 47.1%.
China’s nonmanufacturing business activity index fell by 1.2 percentage points to 49.0% in July. The services activity index declined to 49.3%, while the construction activity index fell by 2.0 percentage points to 47.0%.
Nonmanufacturing new orders dropped by 3.6 percentage points to 44.4%. Construction new orders fell to 40.1%, while service-sector new orders declined to 45.2%.
The nonmanufacturing input price index remained at 49.7%. The sales price index fell by 0.5 percentage points to 47.9%, and the employment index declined by 0.4 percentage points to 45.4%.
The nonmanufacturing business expectations index rose by 0.1 percentage points to 55.4%. Construction expectations increased to 51.8%, while service-sector expectations remained at 56.0%.
Postal services, telecommunications, broadcasting and satellite transmission, and cultural, sports and entertainment services recorded activity indexes above 55.0%. Capital market services and real estate remained below 50%.
China’s composite PMI output index fell by 1.3 percentage points to 49.3% in July. The composite index is calculated as a GDP-weighted combination of the manufacturing production index, which stood at 49.9%, and the nonmanufacturing business activity index, which was 49.0%. A reading below 50% indicates that overall business output contracted from the previous month.