Chinese manufacturing sector contracts again in July
By Michele Maatouk
Date: Monday 31 Jul 2023
(Sharecast News) - The Chinese manufacturing sector contracted in July for the fourth month in a row, according to data released on Monday by the National Bureau of Statistics.
The manufacturing purchasing managers' index rose to 49.3 from 49.0 in June. This remained below the 50 mark that separates contraction from expansion, although it was above consensus expectations of 48.9.
Meanwhile, the non-manufacturing PMI fell to 51.5 in July from 53.2 the month before, versus consensus expectations of 53.0.
Also on Monday, Chinese authorities announced further measures to bolster consumption, targeting areas such as electric vehicles and housing and tourism.
ING said: "The decline in manufacturing eased slightly in July, but the non-manufacturing sector showed a larger-than-expected slowdown in growth and further falls could see it skirting with contraction."
It added: "China's official PMI data provides little encouragement that the economy is turning the corner.
"And while the authorities have been vocal in their support for the economy, so far, that has not translated into the sort of sizeable fiscal policy stimulus many in the market have become used to expecting. We don't think it is coming."
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