The Caixin China General Manufacturing Purchasing Managers' Index (PMI) came in at 49.2 in July, according to the latest report released by S&P Global on Tuesday.
The manufacturing performance deteriorated into contractionary territory, despite this month's number being just 1.3 points lower than the previous reading.
"It was the first time in three months that Chinese manufacturing conditions had contracted, indicating that the sector was weakening," Senior Economist at Caixin Insight Group Dr. Wang Zhe said, noting, however, that the manufacturers remained optimistic. "The July reading for their expectations for future output stayed above 50, though the figure came in below the historical average," he said.
