The manufacturing sector in China continued to expand in July, albeit at a slower pace, the latest survey from Caixin revealed on Monday with a manufacturing PMI score of 50.4.
That's down from 51.7 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Weighing on the headline index was a softer rise in overall new business in July. Total new orders rose only slightly, following a mild increase in June. While a number of firms mentioned that the ongoing recovery from the latest wave of the pandemic had supported higher sales, others commented that demand conditions were relatively subdued. New export business likewise expanded only marginally in July.
In line with the trend seen for new orders, manufacturers in China signaled a softer rise in production during July. The expansion was only mild overall, having eased from June's 19-month record. The slowdown was linked to muted customer demand, lingering COVID-19 impacts and power supply disruption at some firms.
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