SINGAPORE (ICIS)--Caixin’s China manufacturing purchasing managers’ index (PMI) slipped to 50.4 in July from 51.7 in June amid a softer rise in new orders and subdued demand, the Chinese media firm said on Monday.
A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.
Overall growth momentum softened since June amid slower upturns in output and total new work, Caixin said in a statement.
The Caixin PMI follows China's official manufacturing PMI from the China National Bureau of Statistics released on Sunday which fell back into contraction in July at 49.0 in July from 52.0 in June.
Relatively subdued demand and efforts to contain costs led to another decline in employment in July, while manufacturing firms were able to further reduce backlogs of work.
Cost pressures meanwhile eased last month, with average input costs rising at the weakest rate since last December, while prices charged were cut for the third month running.
"Major macroeconomic indicators in the second quarter showed that the adverse impact of the latest round of COVID-19 outbreaks on the economy is fading," said Wang Zhe, senior economist at Caixin Insight Group.
"The third quarter will therefore be a crucial period to get the economy back on track... As the authorities have made it clear that no ultra-massive stimulative measures would be forthcoming, effective implementation of existing policies is a more practical option," Zhe added.