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8h ago

China’s Factory PMI Contracts in July as Trade Truce Nears End

Weak export orders combined with summer weather challenges deepen the downturn just weeks before a U.S.-China tariff pause expires.

Image
A worker inspects a steel coil on the factory floor at the ArcelorMittal Dofasco steel mill in Hamilton, Ontario, Canada March 12, 2025. REUTERS/Carlos Osorio/File Photo
General view of the city centre skyline showing construction cranes and commercial buildings in Dublin, Ireland, January 25, 2022. REUTERS/Clodagh Kilcoyne/File Photo
Employees work on the automobile assembly line of Renault Trafic vehicles at the Renault Sandouville car factory, near Le Havre, France, March 29, 2024. REUTERS/Sarah Meyssonnier/File Photo

Overview

  • China’s official manufacturing PMI fell to 49.3 in July, marking the fourth straight month of contraction.
  • The private S&P Global manufacturing PMI dipped to 49.5, underscoring a pullback in new business and production.
  • New export order sub-indices in China and across Asia remained below the 50-point threshold, reflecting persistent trade-policy uncertainty and soft global demand.
  • High temperatures, heavy rains and the industry’s traditional off-season compounded the decline by disrupting output and supply chains.
  • Negotiations in Stockholm failed to extend the 90-day U.S.-China tariff truce, leaving manufacturers braced for the agreement’s mid-August expiry.