The manufacturing sector in China continued to expand in July, albeit at a slower pace, the latest survey from Caixin showed on Monday with a manufacturing PMI score of 50.3.
That’s down from 51.3 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
A key factor weighing on the headline reading was a renewed fall in total new business during July. Though only marginal, it marked the first decline in sales for 14 months.
Some companies noted that higher factory gate prices had dampened customer demand. At the same time, new export orders rose only slightly as the pandemic continued to hinder sales overseas. Concurrently, the rate of output growth softened for the third month in a row.