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China’s factory activity contracts for first time in 9 months amid weak demand: Caixin PMI
- China’s Caixin/S&P Global manufacturing purchasing managers’ index fell to the lowest reading since October and missed analysts’ forecast in July
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China’s manufacturing activity in July shrank for the first time in nine months as new orders declined, a private sector survey showed on Thursday, boding ill for the country’s growth momentum in the second half of 2024.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) fell to 49.8 in July from 51.8 the previous month, the lowest reading since October and missing analysts’ forecast of 51.5.
The reading, which mostly covers smaller, export-oriented firms, was in line with an official PMI survey on Wednesday showing manufacturing activity slipped to a five-month low.
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According to the Caixin survey, the expansion in manufacturing output was the slowest in nine months, which was attributed to the first fall in new orders in a year.
Participants blamed subdued demand and client budget reductions for the poor performance.
The most prominent issues are still insufficient effective domestic demand and weak market optimism
Subsector data indicated that the renewed drop in new orders predominantly affected investment and intermediate goods, while the consumer goods sector saw slight expansion in July.
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