China's Economy: A Tale of Two Sectors China's factory activity has taken a hit, with the official manufacturing purchasing managers' index (PMI) dropping to 49. 2 in July, its lowest level since May.
This development is significant, as it follows a decline in construction and services sectors, which are also part of the non manufacturing PMI.
The contraction in these key sectors suggests that China's economy may be experiencing weakness, rather than simply a pause in an otherwise resilient narrative.