China Factory, Services Activity Shrinks on Extreme Weather, Weak Demand

China’s economic activity contracted across the board in July, as extreme weather and a seasonal lull stifled production and demand in the world’s second-largest economy.

The official manufacturing purchasing managers’ index (PMI) fell to 49.2 from 50.3 the previous month, the National Bureau of Statistics said Friday. The nonmanufacturing gauge, measuring construction and services, dropped to 49 from 50.2. A reading below 50 indicates contraction.