China's manufacturing PMI at 49.2 in July

China's factory activity saw a mild contraction in July after remaining at or above the 50-point threshold for four consecutive months, official data showed on Friday.

The official purchasing managers' index (PMI) for the manufacturing sector fell to 49.2 in July from 50.3 in June, slipping below the 50-point mark that separates expansion from contraction, according to data from the National Bureau of Statistics.

Despite the overall contraction, key segments of the manufacturing sector continued to show resilience. The PMI for high-tech manufacturing came in at 53.3 in July, remaining firmly in expansion territory. The PMI for equipment manufacturing, meanwhile, stood at 51.4, also signaling solid expansion.

Meanwhile, the subindex tracking manufacturers' expectations for production and business operations stood at 54.1 in July, remaining well above the threshold and pointing to relatively upbeat expectations among manufacturers.

Huo Lihui, an NBS statistician, attributed the July decline in the headline PMI to a high comparison base following relatively rapid manufacturing growth in recent months and seasonal slowdowns in some industries.

Data showed that the subindex for production fell to 49.9 in July, down from 51.4 in June, while the subindex for new orders dropped to 48.5 from 51.2, the NBS reported.

Meanwhile, China's non-manufacturing PMI, which tracks the services and construction sectors, also experienced a slight decline, dropping to 49.0 in July from 50.2 in June. The services PMI declined to 49.3 from 50.4.

The country's official composite PMI, which tracks overall output in both the manufacturing and non-manufacturing sectors, fell to 49.3 in July from 50.6 in June, NBS data showed.