## China’s Manufacturing Sector Shrinks Further Amid Trade Tensions
China’s manufacturing sector is facing headwinds, with the latest data painting a picture of contraction. Here’s a quick rundown:
- **PMI Misses Expectations:** The official Manufacturing Purchasing Managers’ Index (PMI) for July came in at 49.3, below the expected 49.7. This indicates a contraction in manufacturing activity.
- **Contraction Continues:** The PMI has been below 50 (the threshold for expansion) since April.
- **Trade Tensions Persist:** U.S.-China trade tensions, including tariffs, are a contributing factor. The truce is set to expire in mid-August with no extension announced.
- **Sub-Indexes Down:** Key sub-indexes like employment, new orders, and raw materials inventory also contracted.
- **Seasonal Factors:** The National Bureau of Statistics cited the off-season, extreme heat, and heavy rain as contributing factors.
- **Exports Show Resilience:** Despite trade tensions, China’s exports rose by 5.8% year-on-year in June.
- **No Major Stimulus:** China’s leaders did not signal plans for substantial new stimulus during a recent Politburo meeting.
For more details, you can read the original article on CNBC.