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China’s factory activity falls for first time in five months

Official data also shows sharp decline in non-manufacturing activity in July

China’s factory activity unexpectedly contracted in July and a separate gauge covering services and construction hit its lowest level in more than three years, adding to concerns over growth in the world’s second-largest economy.

China’s official manufacturing purchasing managers’ index was 49.2 in July, the lowest level since February, when it last declined. The non-manufacturing PMI was 49, its weakest level since December 2022, with a construction gauge at just 47.

A reading above 50 marks an expansion.

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