A hailstorm of bad economic news for China. The nation’s factory sector contracted by the most in 15 months in July as shrinking orders depressed output.
The preliminary reading of Caixin’s Purchasing Manager’s Index – the PMI – dropped to 48.2 for the month, a fifth straight month below 50. That’s the level which separates contraction from expansion.
New orders and new export orders fell in July while prices of outputs and inputs tumbled, according to the survey.
“Friday’s readings suggest recent improvements in economic momentum may have been derailed by a weaker foreign demand,” was one analyst’s reaction.