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Story · China · 1 Aug 2026

China manufacturing PMI fell to 49.2 in July

China's manufacturing PMI fell to 49.2% in July 2026, leaving the index below the expansion threshold.

Economic GrowthBusiness Activity
Relevance date 1 Aug 2026, 01:30Updated 6 Sept 2026, 06:34Exam relevance 88/100
Flexible-electronics production equipment in a manufacturing laboratory

Verified sources

Check the original evidence before reading the explanation.

Primary sourceNational Bureau of Statistics of China →Purchasing Managers’ Index for July 2026
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30-second read

49.2%

Manufacturing PMI

-1.1%

Monthly PMI change

49.9%

Production index

Exam link: Economic growth → business activity and investment → output, employment and aggregate demand

Story toolsReport / correction
Understand the storyExpand

China's National Bureau of Statistics reported a manufacturing PMI of 49.2% in July 2026, a 1.1% decrease from the previous month. The production index was 49.9% and the new-order index was 48.5%.

What happened

The manufacturing PMI was 49.2% in July 2026, moving 1.1% from the previous month. Production stood at 49.9% and new orders at 48.5%.

Why it matters

PMI surveys are timely indicators of business conditions. Readings above 50 generally indicate expansion, while readings below 50 indicate contraction, making the release useful evidence on the direction of aggregate demand and industrial activity.

Economic context

For A-Level Economics, this is current evidence for growth, business confidence and the economic cycle. PMI is a diffusion index rather than a direct measure of GDP, so use it as a leading indicator and evaluate it alongside official output data.

All key dataExpand
New-order index
48.5%
Production index
49.9%
Manufacturing PMI
49.2%
Monthly PMI change
-1.1%
Use it in an examExpand

Evidence

China's manufacturing PMI fell to 49.2% in July 2026, leaving the index below the expansion threshold.

Explain

PMI surveys are timely indicators of business conditions. Readings above 50 generally indicate expansion, while readings below 50 indicate contraction, making the release useful evidence on the direction of aggregate demand and industrial activity.

Evaluate

For A-Level Economics, this is current evidence for growth, business confidence and the economic cycle. PMI is a diffusion index rather than a direct measure of GDP, so use it as a leading indicator and evaluate it alongside official output data.

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