Fully automated robotic arms produce stamped body parts and axle components for new-energy vehicles (NEVs) at an auto parts manufacturing company in Huzhou, East China’s Zhejiang Province, on July 1, 2025. The company can manufacture a complete set of NEV body metal parts every 60 seconds. Its 200 automated robotic arms are operating at full capacity to fulfill orders. Photo: VCG

China’s manufacturing purchasing managers’ index (PMI) in July came in at 49.3, down 0.4 points from a month earlier. Factors such as the traditional off-season for manufacturing, high temperatures, heavy rain and flooding in some regions, lead to the decline of PMI, Zhao Qinghe, a statistician from National Bureau of Statistics (NBC) said on Thursday.

A reading above 50 signals an expansion in activity, while a number below that indicates a contraction. 

According to Zhao, manufacturing production activity continued to expand in July, with the sub-index for production and new orders index at 50.5 and 49.4, respectively. The two indices for industries such as railway, shipbuilding, aerospace equipment, and computer and communication electronic equipment have maintained expansion, with both production and demand sides showing relatively high activity.

The PMI for equipment manufacturing and high-tech manufacturing stood at 50.3 and 50.6 in July, respectively, signaling the expansion of high-end equipment manufacturing. The PMI for the consumer goods manufacturing reached 49.5, down 0.9 points from June, Zhao said.

The business activity expectation Index was 52.6, up 0.6 points from June, indicating increased confidence among manufacturing enterprises in recent market development. The index for industries such as automobiles, railway, shipbuilding, aerospace equipment, and electrical machinery equipment was at or above 55.0, reflecting a relatively high level of business optimism, the statistician noted.

The non-manufacturing PMI stood at 50.1 in July, down 0.4 points from the previous month but remaining in expansion territory.

Zhao said that driven by the summer holiday effect, industries related to resident travel and consumption, such as railway transportation, air transportation, postal services, and cultural, sports, and entertainment, recorded business activity indices above 60.0, with rapid growth in overall business volumes. 

Industries such as leasing and business services, ecological protection, and public utilities management also had business activity indices in the expansion territory, with the tourism-related industry showing strong activity. 

However, industries like real estate and residential services had business activity indices below the critical threshold. 

Regarding the perspective of market expectations, the business activity expectation index was 56.6, up 0.6 points from the previous month, suggesting that most service industry enterprises are optimistic about future market performances, Zhao said.

Affected by adverse factors such as persistent high temperatures and heavy rain and flooding in some regions recently, construction activity slowed down, with the index coming in at 50.6, down 2.2 points from June.

In July, the composite PMI was 50.2, down 0.5 points from a month earlier, but still above the critical threshold, indicating that overall business production and operating activities in China continued to expand, Zhao noted.

Global Times