China Economic Recovery Weakens, Spurring Measures From Beijing
- Factory activity improves slightly though still in contraction
- Non-manufacturing index eases more than expected in July
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China’s economic activity lost more steam in July with manufacturing contracting again and the services sector weakening, as Beijing promises small measures of support to boost consumption.
The official manufacturing purchasing managers’ index rose slightly to 49.3, beating economists’ estimates but still remaining below the 50 mark that separates expansion from contraction. The non-manufacturing gauge — which measures activity in the services and construction sectors — eased to 51.5, weaker than expectations. A sub-index focused on services waned to 51.5 from June’s 52.8.