Daily Management Review

China notes slowdown in PMI in July


According to data issued on Sunday by China's State Statistics Office, the country's business activity index (PMI) for the industrial sector dropped to 49 points in July.

Tomas Roggero
Tomas Roggero
Compared to 50.2 in June, the indicator decreased by 1.2 percentage points. A PMI value above 50 points indicates an increase in activity, while a lower value indicates a decline.

According to the explanation, the PMI for large businesses dropped by 0.4 percentage points from June to 49.8 in July, while the PMI for medium-sized and small businesses fell by 2.8 and 0.7 points, respectively, to 48.5 and 47.9 points.

Five important indicators are used to produce the final PMI for the manufacturing sector. Indicating weaker demand in the industrial industry, the manufacturing index fell 3 percentage points from June to 49.8 points while the new orders index fell by 1.9 percentage points to 48.5 points.

The key raw materials stockpiles in the industrial sector reduced in July, as indicated by the raw materials inventory index, which dropped by 0.2 percentage points to 47.9. The employment index dropped 0.1 points to 48.6, indicating a minor reduction in the need for industrial workers.

The raw materials supply index, meanwhile, dropped 1.2 percentage points from June to July, reaching 50.1.

The non-manufacturing sector of China's business activity index (PMI) decreased to 53.8 points in July.

source: english.news.cn