China Factory Activity Surprises With First Slump in Five Months

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Or sign-in if you have an account.(Bloomberg) — China’s factory activity unexpectedly contracted for the first time in five months, adding to signs of slowing economic momentum. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe official manufacturing purchasing managers’ index was 49.2 in July, versus 50.3 in June, the National Bureau of Statistics said Friday. The median estimate of economists surveyed by Bloomberg was 50.1.The non-manufacturing measure of activity in construction and services fell more than forecast to 49 — the lowest since December 2022 — from 50.2 last month, the statistics office said. A reading below 50 indicates contraction.The declines suggest economic weakness is becoming more entrenched, with soft domestic demand outweighing resilience in exports. Investors are increasingly focused on whether policymakers will roll out stimulus measures to stabilize the economy after the government dialed back spending on infrastructure in recent months.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againConcerns over the health of China’s economy have been intensifying since April as growth weakened and became more unbalanced. Though the energy shock unleashed by the war in Iran has helped drag China out of its yearslong deflation, consumer and business confidence is still sluggish.Economic growth slowed to 4.3% in the second quarter from 2025, the weakest quarterly growth in more than three years. But a strong first quarter means that growth in January-June was 4.7%, within this year’s official target range of 4.5% to 5%. Top officials pledged to “roll out pragmatic and effective new policies in a timely manner” during a key policy meeting on Thursday. With exports soaring at a double-digit pace this year, economists had expected officials to act with little urgency for now in rolling out any fresh stimulus measures. Policymakers also pledged to speed up the pace of public spending and the use of funds raised through government bonds.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.