China’s manufacturing activity contracted in July, monthly purchasing managers’ index shows

BEIJING — A closely watched gauge of Chinese manufacturing activity remained negative in July as concerns persisted about the state of the world’s second-largest economy.

The purchasing managers’ index, based on a survey of factory managers, fell 0.1 points to 49.4, the National Bureau of Statistics said on Wednesday. third consecutive monthly reading below 50, a level that indicates a contraction in manufacturing activity.

The parallel purchasing managers’ index for the services sector also fell by 0.3 points, while remaining in positive territory at 50.2.

The Politburo, the top body of China’s ruling Communist Party, warned Tuesday that the coming months would be difficult and promised unspecified measures to restore confidence in financial markets and boost public spending.