China's manufacturing and services sectors contracted sharply in July, with GDP growth slowing to 4.3% YoY in Q2, signaling broad economic weakness.
Macro & Markets ·
China's manufacturing activity contracted in July with a PMI reading of 49.2, falling below the 50-point threshold that separates expansion from contraction for the first time since February. Services and construction sectors also weakened, with non-manufacturing PMI at 49.0 and construction PMI at 47.0—the latter marking its lowest level since 2020. Second-quarter GDP growth decelerated to 4.3 percent year-over-year, representing the slowest pace since late 2022, indicating economic softness spreading across multiple sectors.