AI Data Insight
In July 2026, China's manufacturing PMI purchase price index fell to 53.2 from 54.2 in the previous month. The upward pressure on raw material costs slightly decreased but remained in the expansionary zone. In the same month, the overall manufacturing PMI unexpectedly dropped to 49.2, falling below the boom-bust line. This reflects the dual blow of weak domestic demand and climate disruptions, prompting a significant increase in market expectations for the authorities to launch counter-cyclical stimulus policies.