MNI BRIEF: S&P China Mfg. PMI Falls Into Contraction In July

China's S&P manufacturing PMI, previously known as the Caixin manufacturing PMI, came in at 49.5 in July, up from June's 50.4, falling back into the contraction zone below the 50 mark, as factory output scaled back amid a slower increase in new orders, the company said on Friday.

After rising in June, the production sub-index declined during July, marking the second time in which production has fallen since October 2023, though the rate of contraction was only modest. The new order sub-index growth slowed since June, with the new export order sub-index contracted for a fourth straight month and at a faster pace than in June.

S&P PMI mainly tracks SME manufacturers. The official PMI released on Thursday, which typically covers large state-owned companies, registered 49.3 in July, down from June's 49.7 reading.