World (AP)

China’s manufacturing activity contracted in July, the monthly Purchasing Managers’ Index says

China’s manufacturing activity contracted in July, the monthly Purchasing Managers’ Index says

BEIJING (AP) — A closely watched measure of Chinese manufacturing activity remained negative in July as concern persists about the state of the world’s second largest economy.

The Purchasing Managers’ Index, based on a survey of factory managers, slipped 0.1 points to 49.4, the National Bureau of Statistics said Wednesday. It was the third straight monthly reading below 50, a level that indicates a contraction of manufacturing activity.

A parallel purchasing managers’ index for the service sector also fell 0.3 points, though it remained in positive territory at 50.2.

The Politburo, a top body of China’s ruling Communist Party, warned Tuesday that the coming months would be tough and promised unspecified measures to restore confidence in financial markets and boost government spending.