China official PMI shows factory sector barely growing

English: The Great Wall of China, near Beijing in July 2006. This is a section of Mutianyu. (Photo credit: Wikipedia)

China's official factory purchasing managers' index fell to an eight-month low of 50.1 in July from 50.2 in June, suggesting the sector is barely growing, a survey by the National Bureau of Statistics showed on Wednesday. The figures showed that factory output was expanding, but that new orders, including new export orders, were contracting in July more deeply than in June. Economists polled by Reuters this week had expected July's official PMI to edge up to 50.3, above the 50 point level that demarcates expansion from contraction, after Beijing had come up with various measures aimed at shoring up growth in the world's second-largest economy. The China Federation of Logistics and Purchasing (CFLP), which compiles the data, said in a statement that the data suggested the economy is hitting a bottom and it will continue to stabilize in coming months. "But current demand is still relatively weak, and the downward pressure from oversupply has not been eliminated," it said. The July PMI was the lowest reading since November, in the latest sign that growth in the world's second-biggest economy is slowing down on the back of a cooling pace in exports, factory output and fixed asset investment. ... Continue to read.

Related articles

• China's PMI More Stable (247wallst.com)
• China's Manufacturing Activity Picked Up In July: HSBC PMI‎ (ibtimes.com)
• Chinese Flash PMI Hits 5-Month High Of 49.5 (businessinsider.com)