China manufacturing activity shrinks for a third straight month in July- PMI
2024.07.30 23:02
Investing.com– China’s manufacturing sector shrank as expected in July, purchasing managers index data showed on Wednesday, contracting for a third consecutive month as domestic demand remained weak amid middling support from Beijing.
fell to 49.4 in July, data from the National Bureau of Statistics showed. The reading contracted further from the 49.5 seen in the prior month.
A reading below 50 indicates contraction, with Chinese manufacturing activity now shrinking for a third straight month.
The reading was driven chiefly by sluggish domestic demand, as Chinese consumer spending weakened further amid waning confidence in an economic recovery.
Increased trade tariffs on China from the European Union- which went live in July- also weighed on manufacturing output, as export demand weakened. The tariffs were aimed chiefly at China’s electric vehicle industry, which has been a bright spot in the manufacturing sector.
Beijing has so far provided scant cues on planned stimulus measures to further support growth, with surprise interest rate cuts by the People’s Bank doing little to improve confidence earlier in July.
Weakness in Chinese consumption extended beyond the manufacturing sector. grew 50.2 in July, in line with expectations but slowing from the 50.5 seen in the prior month.
This saw slow to 50.2 in July from 50.5 in the prior month.
The Chinese economy grew less than expected in the second quarter, drawing promises of more stimulus from Beijing, especially to boost consumption. But the government still gave no clear signals on what measures it will enact, which sparked little confidence in the economy.
