China’s official gauges of manufacturing, services, and construction fell into contraction in July, adding to evidence that shrinking orders, job insecurity, and weak household spending are weighing on much of the economy even as favored technology industries continue to expand.
The official manufacturing purchasing managers’ index (PMI) fell to 49.2 from 50.3 in June, according to data released on July 31 by China’s National Bureau of Statistics and the China Federation of Logistics and Purchasing. It was the first reading below 50 since February.
The index for nonmanufacturing activity, which covers services and construction, fell to 49.0, while the composite output index dropped to 49.3. Readings below 50 indicate that more surveyed companies reported declining activity than improvement from the preceding month….
China’s Business Activity Contracts as Orders, Jobs, and Consumer Demand Weaken
