China: Factory activity contracts to two-year low

  • China’s factory activity in July fell to its weakest level in two years.

    The Caixin/Markit manufacturing PMI (purchasing managers' index) fell from 49.4 in June to 47.8 in July, marking the fifth straight month of contraction in this key sector of the world’s second largest economy. Figures above 50 indicate growth, while a reading below 50 shows contraction.

    The reading by the private index, which looks at mid-sized and small firms, is the lowest since 2013 July.

    Tagged as: China, factory activity, Caixin Markit, PMI, contraction, Chinese economy, business news