China’s Manufacturing and Non-Manufacturing PMIs Both Slip Below 50 in July

China’s manufacturing sector showed signs of contraction in July as the Purchasing Managers' Index (PMI) dropped to 49.2, down from 50.3 in the previous month and below the market consensus of 50.0, according to FX Street.

Meanwhile, the non-manufacturing PMI also declined, easing to 49.0 in July, signaling a contraction in the broader service sector as well, FX Street reported. Both readings are below the 50-point threshold that separates expansion from contraction.

For Japanese investors and traders, these figures highlight potential headwinds in China’s economic recovery, which could influence regional export demand and impact currency and equity markets linked to Chinese growth.