China’s factory activity grows at slower pace in July as output, new orders and employment soften

Caixin/Markit manufacturing purchasing managers’ index (PMI) eased to 50.4 in July from 51.7 in June

On Sunday, China’s official manufacturing PMI fell to 49.0 in July, down from 50.2 in June

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China’s Caixin/Markit manufacturing purchasing managers’ index (PMI) eased to 50.4 in July from 51.7 in June, data released on Monday showed. Photo: Xinhua

Published: 9:59am, 1 Aug 2022Updated: 11:58am, 1 Aug 2022

China’s factory activity expanded at a slower pace in July, as growth momentum softened in output, new orders and employment, a private sector poll showed on Monday.

The Caixin/Markit manufacturing purchasing managers’ index (PMI) eased to 50.4 in July from 51.7 in the previous month. The reading was well below analysts’ expectations for a slight dip to 51.5.

The 50-point index mark separates growth from contraction on a monthly basis.

China’s major manufacturing hubs, including the commercial hub Shanghai, saw a solid rebound in June from widespread coronavirus lockdowns in spring, but the recovery has started to fade amid fresh virus flare-ups and weakening domestic and global demand, as well as a prolonged property market slump.

The findings were slightly better than the government’s official PMI on Sunday that showed China’s factory activity unexpectedly contracting in July. The Caixin survey is believed to focus more on smaller, export-oriented companies.

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