China July PMI Drops to 49.2% in Manufacturing, 49% in Services
China's National Bureau of Statistics reported July PMI data showing manufacturing at 49.2%, non-manufacturing at 49.0%, and composite at 49.3%, all declining from June by 1.1, 1.2, and 1.3 percentage points respectively. Equipment and high-tech manufacturing PMI stood at 51.4% and 53.3%, well above the overall level. Separately, the low-altitude economy, now under strengthened regulation with a revised civil aviation law effective July 1, 2026, has grown from about RMB 280 billion in 2020 to RMB 1.5 trillion in 2025, with one company's 'land aircraft carrier' product receiving over 7,000 orders.
On July 31, the National Bureau of Statistics released the July Purchasing Managers' Index (PMI) data. The manufacturing PMI stood at 49.2%, the non-manufacturing business activity index at 49.0%, and the composite PMI output index at 49.3%, down 1.1, 1.2, and 1.3 percentage points from the previous month respectively, indicating a decline in the level of economic activity. The equipment manufacturing PMI was 51.4%, and the high-tech manufacturing PMI was 53.3%, both significantly higher than the overall manufacturing level.
The low-altitude economy is currently under strong regulation. A revised Civil Aviation Law of the People's Republic of China came into effect on July 1, 2026, establishing for the first time at the national legal level the strategic position of the low-altitude economy, clarifying airspace classification management, and simplifying approval procedures. The market size of the low-altitude economy has grown from about RMB 280 billion in 2020 to RMB 1.5 trillion in 2025, with rapid development across all segments of the industrial chain. Multiple companies are cooperating with industrial chain partners and local governments to deploy scenarios such as low-altitude commuting, cultural tourism, and emergency rescue, accelerating the formation of a commercial closed loop. One company's 'land aircraft carrier' product has received over 7,000 orders domestically and internationally, with customers including technology pioneers, industry elites, flight enthusiasts, and enterprise users for training, research, and public services.
Why this event matters
The event has a measured impact on 1 industry. The strongest current signal is positive for Aerospace Manufacturing, with intensity 85/100 and 80% confidence over a medium term horizon.
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.