China’s manufacturing sector suffered a slowdown in July, as higher raw material costs, longer lead times for supplies and extreme weather weighed on factory activity in the world's second largest economy. According to the latest reading published by the National Bureau of Statistics on Saturday, the Manufacturing Purchasing Managers Index (PMI), a measure of factory activity across the country, fell to 50.4, marking the lowest level since February 2020 while still remaining above the threshold indicating an expansion.
The Manufacturing PMI is considered one of the most important indicators for China’s economic backbone. Due to China’s status as the world’s manufacturing hub, it is also widely followed internationally as a gauge for the health of the country’s overall economy.
