China’s factory activity grows at slowest pace in 17 months

July’s official PMI shows raw material costs hurt businesses

China’s factory activity expanded in July at the slowest pace in 17 months as higher raw material costs, plant maintenance and extreme weather weighed on businesses, adding to concerns about a slowdown in the second-biggest economy. The official manufacturing Purchasing Manager’s Index (PMI) eased to 50.4 in July from 50.9 in June, data from the National Bureau of Statistics (NBS) showed, but stayed above the 50-point mark that separates growth from contraction. Analysts had expected it to slip to 50.8. It was the lowest figure since the index slumped to 35.7 in February 2020, after China began lockdowns to control the coronavirus pandemic.