China reported a manufacturing growth below market estimates, following on from its dramatic slowdown in economic activity last month to 0.4% growth, coming far below analyst expectations of a 1.2% forecast.
China’s manufacturing purchasing managers’ index slid to 49.0 in July from 50.2 in June, dropping beneath the market estimated of 50.4.
Analysts confirmed the effects of Covid-19 lockdowns were seen in core trends, along with overall concerns linked to the economy as a result of drastic monetary tightening moves.
The report pointed out contractions in output, new orders, buying levels and export levels.
The news has served to make the market uneasy, adding to the pressures of soaring inflation in the UK and US, and recession fears spiking across the global market scope.
“The latest National Bureau of Statistics of China manufacturing purchasing managers’ index unexpectedly fell to 49.0 in July, from 50.2 in the previous month and missing market forecasts of 50.4,” said Hargreaves Lansdown lead equity analyst Sophie Lund-Yates.
“There was a very mixed bag hidden within the results, with core trends showing the negative effect of new lockdowns in key cities and general concerns over the global economy, following sharp monetary tightening efforts.”
“Output, new orders, buying levels and export orders all shrank. This latest data set does very little to offset concerns around darkening global economic output, especially when put together with a further easing of sentiment.”
