The HSBC/Markit Flash Purchasing Managers Index (PMI) came in at 47.7 in July, lower than Bloomberg consensus of 48.2, suggesting China’s manufacturing growth momentum weakened further.
The number is also down from June’s reading of 48.2.
Goldman Sachs Gao Hua says the sub-indexes send somewhat mixed signals about the health of the Chinese economy. Overall orders, production and employment are down, yet input and output prices, backlog of orders rebounded.
The July reading is the lowest in 11 months for China.