China’s Private Factory Gauge Dips for First Time in Nine Months

  • Caixin survey shows manufacturing unexpectedly cooled in July
  • Weak domestic demand holds back production, economist says
WATCH: Bank J. Safra Sarasin’s Mali Chivakul says it’s becoming “more difficult” for China to meet the 5% growth target.Source: Bloomberg
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China’s manufacturing activity unexpectedly shrank for the first time in nine months in July, a private survey showed, a sign the country’s export machine might be cooling, darkening the economy’s outlook.

The Caixin manufacturing purchasing managers index fell to 49.8 last month from 51.8 in June, according to a statement released by Caixin and S&P Global Thursday. It missed the median forecast of 51.5 and was the first time since October the gauge dropped under 50, which indicates contraction.