China Manufacturing PMI Falls Below 50 Threshold

China's manufacturing purchasing managers index fell 1.1 points to 49.2 in July 2026, below the 50 expansion threshold, the National Bureau of Statistics of China reported on August 1, 2026 [1]. The June reading was 50.3 [1]. A reading below 50 indicates contraction in the manufacturing sector [1].

All five manufacturing sub-indexes sat below 50 in July. The production index fell 1.5 points to 49.9; the new order index fell 2.7 points to 48.5; the raw materials inventory index fell 0.1 points to 48.3; the employment index rose 0.5 points to 49.0; and the supplier delivery time index fell 0.4 points to 49.5 [1]. New export orders fell to 49.6 from 50.1 in June, and the import index fell to 47.5 from 49.6 [1].

The non-manufacturing business activity index fell 1.2 points to 49.0, with construction at 47.0 and services at 49.3 [1]. The production and operation expectation index held at 54.1 [1].

The new order and import sub-indices show softer domestic demand and weaker inbound material purchasing in July; the series are seasonally adjusted and compiled by NBS with the China Federation of Logistics and Purchasing [1].