Manufacturing Deteriorates
China's official manufacturing PMI fell to 49.2% in July 2026, down 1.1 percentage points from June, the NBS reported on July 31. The reading slipped below the 50-point threshold that separates expansion from contraction — a setback after June's reading of 50.3%.
Breakdown by Enterprise Size
| Enterprise Type | July 2026 PMI | Month-on-Month Change |
|---|---|---|
| Large enterprises | 49.5% | −1.2 pp |
| Medium enterprises | 49.7% | −0.8 pp |
| Small enterprises | 47.4% | −0.8 pp |
Overall Picture
The comprehensive PMI — covering both manufacturing and services — stood at 49.3%, down 1.3 percentage points from June. The non-manufacturing business activity index fell to 49.0%, a contraction driven by softness in construction and services sub-indices. Input inventory at 48.3% and supplier delivery times at 49.5% both point to lingering supply-side caution.