China’s Rebound Remains Fragile as Manufacturing, Property Slump

An employee works on the production floor at the Voith Turbo Power Transmission auto parts factory in Shanghai on July 21. Photo: Bloomberg

(Bloomberg) — China’s factory activity unexpectedly contracted in July while property sales continued to shrink, highlighting the fragility of the economy’s recovery amid sporadic Covid outbreaks and adding to calls for more policy stimulus to fuel growth.

The official manufacturing purchasing managers index fell to 49 from 50.2 in June, the National Bureau of Statistics said Sunday, dropping below the 50-mark that indicates a contraction in activity. Separately, data from China’s top 100 property developers showed the housing market continued to slump last month.