China's Manufacturing Activity Contracts for First Time Since February, Ending Four-Month Expansion
China’s manufacturing activity unexpectedly contracted in July, ending four consecutive months of expansion and marking a significant slowdown after the second-quarter rebound driven by strong exports. The official manufacturing purchasing managers' index (PMI) dropped to 49.2 from 50.3 in June, falling below the 50 threshold that indicates contraction. This was weaker than economists’ expectations and highlighted growing economic challenges for Beijing as it seeks to stimulate domestic demand. The slowdown comes amid signs of strain on China’s export sector, with U.S.-bound shipments declining after a surge earlier this year driven by anticipation of higher American tariffs under President Donald Trump's policies. The National Bureau of Statistics also reported that the second-quarter GDP growth came in at 4.3%, missing the lower end of its full-year target and marking the slowest pace in over three years. The government has pledged to accelerate fiscal spending and introduce new stimulus measures following a mid-year policy meeting acknowledging economic difficulties.
