Monthly Purchasing Manager Index has decreased to 50.3, down from 51.3 in June
China’s manufacturing growth fell to a 15-month low in July, but demand for exports slowed as factories struggled to deal with supply issues, according to China’s total manufacturer PMI .
The monthly Purchasing Manager index has decreased to 50.3, down from 51.3 in June, with over 50 activities increasing.
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Compared to other countries, China has recovered quickly from the pandemic, but manufacturers are struggling to wait for their supply chains to return to the level they see before the pandemic.
Additionally, foreign export markets are struggling as new variations of Covid continue to curb their respective recovery.
New export orders rose slightly as the pandemic continued to hamper overseas sales.
China’s economy is nearly recovering from the disruption caused by the coronavirus pandemic, but faces new challenges in recent months, including rising raw material costs dragged by profit growth for industrial companies in June “We’re doing this,” the report said.
Supply chain delays continued in July, with average input delivery times steadily increasing. Anecdotal evidence showed that material shortages and transportation delays caused by the pandemic have driven the latest increase in lead times.
Volume pressure was eased at the start of the third quarter, with work backlog rising at its softest pace for five months. Meanwhile, employment levels remained largely unchanged in July after a slight increase in payroll counts in June.
Dr. Wang Zhe, senior economist at Caixin Insight Group, commented on PMITM data for China’s total manufacturing industry.
“The Caixin China General Manufacturing PMI was down from 51.3 in July at 50.3 in the previous month. Reading in July was the lowest in 15 months, but marked the 15th consecutive month expansion. That is, manufacturing The expansion rate has declined even further while the business continues to grow.”
Zhe added that inflationary pressures have been eased slightly.
“Gages of both input and output prices fell in July, with the latter dropping at a rapid pace. Still, the companies surveyed said that raw material prices remained high, especially for industrial metals. As I mentioned, the input price gauge was well above 50. In particular, for the eighth month in July, the input price gauge was above 55.”
