China factory activity shrinks in July, adding to pressure to reverse economic slump
A purchasing managers' index issued by China's statistics agency and an industry group improved to 49.3 from June's 49 on a 100-point scale but was below the 50-point level that shows activity contracting.
Chinese factory activity contracted in July as export orders shrank, a survey showed Monday, adding to pressure on the ruling Communist Party to reverse an economic slowdown. (Reuters Photo/Representative) Chinese factory activity contracted in July as export orders shrank, a survey showed Monday, adding to pressure on the ruling Communist Party to reverse an economic slowdown.
A purchasing managers’ index issued by the national statistics agency and an industry group improved to 49.3 from June’s 49 on a 100-point scale but was below the 50-point level that shows activity contracting.
“China’s manufacturing PMI remained in contraction, albeit a softer pace, as the drag from the external sector deepened,” Erin Xin of HSBC said in a report. That puts “more pressure on Beijing to support growth through both fiscal and monetary measures.” Chinese leaders are trying to revive economic activity by promising to support entrepreneurs who generate jobs and wealth. But they have yet to give details possible tax cuts or spending and have avoided announcing a large-scale stimulus.
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