The recovery trend in the Chinese economy ended with an unexpected contraction signal in the manufacturing sector.
The Caixin Purchasing Managers Index (PMI), which measures the activity of the private sector, fell to 50.4. Economists participating in the Bloomberg survey expected that the index would get 51.5. In June, the index was 51.7.
China’s official manufacturing PMI fell to 49. The index was 50.2 in June. According to economists, the negative impact of Covid-related policies on the economy played a role in the PMI slowdown, and looser policies are needed for growth.
