Manufacturing Rebounds After 16 Months of Contraction, With Caixin China PMI at 50.6 (Updated)

(Beijing) – The conditions of Chinese manufacturers improved in July after 16 straight months of decline, with the Caixin China Purchasing Managers' Index coming in at 50.6.

The index is 2 points higher than June's 48.6 and marks the first month-to-month expansion of manufacturing activity since February 2015.

The recovery was mainly driven by growth in domestic orders, which more than offset a slight decline in foreign demand. Output also increased in July after three straight months of decline, and the rate of expansion, though modest, was the fastest seen in two years.