Beijing – According to two surveys, China’s manufacturing growth slowed to its lowest level in 15 months in July as export demand weakened and factories dealt with disruptions in the supply of raw materials and parts.
The monthly purchaser index released by Caixin Media, a business magazine, dropped from 51.3 in June to 50.3 on a 100-point scale, with numbers above 50 indicating increased activity. Another PMI issued by trade associations and the China Statistics Bureau fell from 50.9 to 50.4.
China has recovered relatively quickly from the coronavirus pandemic, but manufacturers are struggling to wait for the supply chain to return to pre-pandemic activity, and overseas markets are hampered by the outbreak of new illnesses. increase.
Caixin’s new export order readings fell from 51.3 in June to 50.3.
China’s economy expanded compared to early 2020, when factories and stores were closed to fight the coronavirus pandemic, but grew 7.9% a year ago in the three months to June. Production increased 1.3% compared to the previous quarter, up from 0.6% growth in the previous quarter, but was one of the weakest measurements in the last decade.
June exports rose 32.2% more than a year ago, but the government warned that it could weaken in the second half of the year.
“The latest findings support our view that the economy will tread in the second half of this year,” Julian Evans Pritchard of Capital Economics said in a report. “Given how active the recent activity is, it should not be a source of vigilance.”
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China’s July production weakens amid weak exports
Source link China’s July production weakens amid weak exports