China's manufacturing sector softens in July, new drivers resilient

BEIJING -- China's manufacturing sector softened slightly in July due to seasonal factors, but underlying growth momentum remained resilient, with emerging industries gaining traction and business confidence continuing to improve.

The purchasing managers' index (PMI) for manufacturers stood at 49.3 in July, down from 49.7 the previous month, according to data released Thursday by the National Bureau of Statistics (NBS).

The manufacturing industry entered its traditional low season, compounded by high temperatures and extreme weather events, including heavy rain and flooding in some regions, said Zhao Qinghe, a senior NBS statistician.

Despite the overall decline, Zhao stressed that several sub-indexes pointed to a positive trajectory. The PMI for high-tech manufacturing was 50.6, with that of equipment manufacturing at 50.3, both remaining above the threshold that separates expansion from contraction.

Industrial sentiment also showed notable improvement as the business expectation index climbed to 52.6 -- up from 52 in June. Sectors such as automobiles, railway and electrical equipment reported particularly strong optimism -- with their expectation indexes all exceeding 55.

Other bright spots revealed by data included a sustained expansion in the production index, a continued price recovery and steady growth among large enterprises.