China's July 2026 Manufacturing PMI Falls to 49.2%; Equipment and High-Tech Manufacturing Maintain Expansion

In July 2026, the manufacturing purchasing managers' index (PMI) fell to 49.2%, affected by a high base from the earlier rapid growth of manufacturing and the entry of some manufacturing industries into the traditional production off-season.

The PMI for equipment manufacturing and high-tech manufacturing was 51.4% and 53.3%, respectively, significantly higher than the overall manufacturing level, maintaining relatively rapid expansion. The PMI for consumer goods and high-energy consumption industries was 47.8% and 47.0%, down 2.4 and 0.1 percentage points from the previous month, indicating a decline in sentiment.

The manufacturing production index and new orders index were 49.9% and 48.5%, respectively, down 1.5 and 2.7 percentage points from the previous month, indicating a decline in both manufacturing enterprise production and market demand. By industry, the production index and new orders index for general equipment, computer communication and electronic equipment, and other industries were both above 53.0%, showing high market activity and relatively fast growth in production and demand. In contrast, industries such as non-metallic mineral products, ferrous metal smelting and rolling processing, and automobiles had production and new orders indices below the threshold, indicating weak supply and demand sentiment.

The main raw material purchase price index and factory gate price index were 53.2% and 47.8%, respectively, declining for four consecutive months due to recent fluctuations in some commodity prices and other factors.