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China’s manufacturing activity fell for a third consecutive month in July, according to an official survey, increasing pressure on policymakers to speed up stimulus measures to boost the world’s second-biggest economy.
The country’s official manufacturing purchasing managers’ index came in at 49.4 for last month, in line with a Bloomberg poll of analysts’ forecasts and down from 49.5 in June. A reading above 50 marks an expansion compared with the previous month.
China’s politburo this week called for faster implementation of a stimulus programme, and the central bank has cut interest rates as the government tries to meet its economic growth target of 5 per cent for this year.
China’s economy is suffering from weak domestic consumption as a prolonged property slowdown and tighter government control over business undermine confidence.
At its recent five-yearly strategic policy meeting, Beijing emphasised high-end manufacturing and an upgraded industrial sector over property and household consumption.
The non-manufacturing PMI came in at 50.2 in July, still in growth territory and in line with analysts’ forecasts of 50.2 but down from a reading of 50.5 in June.
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