China’s Manufacturing Activity Shrinks in July

China’s manufacturing activity contracted unexpectedly in July compared to the previous month, a further sign of slowing economic momentum in the coming period.

The S&P Global Manufacturing Purchasing Managers’ Index (PMI) for the manufacturing sector fell to 49.5 in July, compared to 50.4 in June, below expectations of 50.2.

The results of this private survey are consistent with the official reading released on Thursday, which showed factory activity contracting at its fastest pace in three months.

The National Bureau of Statistics attributed this decline to disruptions caused by severe heat waves, heavy rains, and flooding that hit some areas.