Manufacturing PMI shows China faces contractionAFP, BEIJINGChina’s manufacturing activity logged a surprise drop last month, official data showed yesterday, on the back of weak demand and as strict “zero COVID-19” restrictions continue to cast a pall on growth. The purchasing managers’ index (PMI), a key gauge of manufacturing activity in the world’s second-biggest economy, was 49.0, down from 50.2 in June and below the 50-point mark separating growth from contraction, Chinese National Bureau of Statistics (NBS) data showed. “In July, the manufacturing PMI dropped ... due to factors such as the traditional off-season for production, insufficient release of market demand and decline in prosperity of high-energy-consuming industries,” Zhao Qinghe (趙清河), a senior statistician at the bureau, said in a statement. “In acknowledging the difficulties, the government has finally become flexible towards this year’s growth target,” ANZ Research analysts said in a note. China’s non-manufacturing PMI last month dropped to 53.8 from 54.7 in June, NBS data showed.

Source: Taipei Times August 01, 2022 00:54 UTC