China's economic activity contracted in July, with key purchasing managers' indices falling below the 50-point expansion threshold, signaling a broad downturn across manufacturing and services.
The official manufacturing PMI dropped to 49.2 from 50.3 in June, while the services and construction index fell to 49.0 from 50.2. Within manufacturing, new orders posted the steepest monthly decline, dropping 2.7 points to 48.5. The construction subindex extended its losing streak, marking a seventh consecutive month of contraction. The composite PMI slipped to 49.3 from 50.6 the prior month.
The weak readings follow second-quarter GDP growth of 4.3 percent, down from 5 percent in the first quarter, as Beijing struggles to meet its 4.5 to 5 percent annual target. The Communist Party of China's Politburo pledged further economic support on Thursday.