China’s July manufacturing activity contracts more than expected

Beijing-China’s official indicator for production activities on Thursday pointed out to a worse contraction than expected due to slow economic growth and ongoing US trade tensions in July.

According to a Reuters survey, the production of production managers for July is 49.3 and their expectations for 49.7 are missing.

China’s official manufacturing PMI has been below 50 signs that reflect contraction instead of expansion since April.

The US-China tensions increased in April and both sides applied more than 100% tariffs for imports of goods from the other. In May, the two sides agreed to take back most of the additional tasks for 90 days.

The ceasefire will end in mid -August. Representatives from the two largest economies in the world ended a meeting in Stockholm this week and announced a wide -awaited extension of the agreement.

In the manufacturing PMI, lower indices showed that the inventory of employment, new orders and raw material inventory also made a contract in July. The job index passed from 47.9 to 48 in June.

National Statistics Office Manufacturing PMI decrease has been attributed Factors such as excessive heat and heavy rain in the traditional season and regions of the country in July.

According to the state media, in one of the latest examples of extreme weather conditions, at least 30 people died on Beijing’s skirts after publishing the highest -level red alarm for heavy rain.

China’s exports increased by 5.8% annually in June and more than a decrease in exports to the US, the customs data shown in the beginning of this month.

During a high -level Politburo meeting on Wednesday, China’s senior leaders did not point to important new stimuli plans, although they increased subsidies to encourage people to have more children.

– Anniek Bao from CNBC contributed to this report.