Chinese industrial activity shrinks for the fourth month in a row
Industrial activity in China has suffered a decline for the fourth month running in July, as per the official data released on Monday, while the authorities put forth additional measures to boost the world’s second-largest economy.
The manufacturing Purchasing Managers Index (PMI) – a pivotal indicator of factory output – was reported to be 49.3 in July, below the 50-point benchmark that distinguishes between expansion and contraction, according to the National Bureau of Statistics (NBS).
This indicator was slightly higher than the June figure (49.0) in July and better than the forecasts given in a Bloomberg survey.
China is struggling to enhance its growth as the post-pandemic recovery is losing momentum, largely due to the sluggish consumer spending.
The non-manufacturing PMI, which measures the situation in services and construction, fell to 51.5 in July from June’s 53.2, while activity in capital market services and real estate contracted.
On Monday, the Chinese government introduced a 20-point plan to boost consumption, including more support for household demand, the culture and tourism sector, and green consumption such as electric vehicles.
China announced this month that its economy grew by 6.3% in the second quarter, weaker than the 7.1% forecasted in an AFP poll with analysts.
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