FX.co ★ China’s Composite PMI Slips Below 50 in July, Signaling Contraction in Private Sector Activity

China’s Composite Purchasing Managers’ Index (PMI) fell into contraction territory in July 2026, underscoring rising pressure on the country’s private sector. The index declined to 49.3 in July from 50.6 in June 2026, according to data updated on 31 July 2026.

The drop below the 50-point threshold, which separates expansion from contraction, indicates that overall business activity in China softened over the month. The move from June’s modest expansion level suggests a deterioration in operating conditions across the combined manufacturing and services sectors.

Investors and policymakers are likely to watch upcoming data closely to assess whether July’s downturn proves temporary or signals a more persistent slowdown in China’s economic momentum.