China Caixin July 2025 Manufacturing PMI 49.5 (anticipated 50.three, prior 50.four)

That is the non-public survey manufacturing PMI for July 2025: 49.5

China’s manufacturing sector fell again into contraction in July, with the S&P International Manufacturing PMI dropping to 49.5, down from 50.four in June and beneath market expectations. The sub-50 studying alerts renewed weak point in industrial output, elevating issues about China’s development momentum getting into the third quarter.

The survey confirmed new export orders fell for a fourth straight month, declining at a quicker fee than in June, as demand softened. Manufacturing output slipped after a quick enchancment in June, with corporations relying extra on present inventories to satisfy orders — resulting in a second consecutive drop in completed items shares.

With manufacturing down and backlogs steady, producers trimmed workers ranges in July, citing weak demand and rising price pressures.

Regardless of these headwinds, enterprise confidence ticked up, although it remained beneath the long-term common. Firms stated they had been hopeful that higher financial situations and advertising efforts may assist gross sales within the months forward.

In the meantime, enter costs rose for the primary time in 5 months, pushed partially by Beijing’s push to rein in damaging worth competitors. Nonetheless, promoting costs continued to say no, as corporations vied aggressively for brand spanking new orders. Nonetheless, export costs climbed at their quickest tempo in a 12 months resulting from increased transport and logistics prices.

The weak PMI follows a equally mushy studying from the official authorities survey (hyperlink beneath), with analysts now warning that the increase from front-loaded exports forward of U.S. tariffs might quickly fade. Markets are additionally anticipating potential new manufacturing facility capability cuts, as authorities think about measures to handle deflation dangers and disorderly competitors within the second half of the 12 months.

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As a ps. Caixin now not sponsor this knowledge.

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Yesterday we had:

• China Manufacturing PMI (July 2025) 49.three (vs. 49.7 anticipated)

This text was written by Aaron Cutchburt at investinglive.com.