Last weekend statistics on China's economy came out and showed rather weak results. According to the National Bureau of Statistics of the country the manufacturing PMI in July decreased by 1.2 points against June to 49 p. This did not meet the expectations of analysts, who predicted it to be 50.4 p. The index value below 50 signals recession in the industry, moreover, the result was the worst for the last 3 months.
The composite business activity index, according to official data, declined 1.6 points in July to 52.5 p. The PMI in the non-manufacturing sectors showed a decline of 0.9 points to 58.3.
According to an assessment of senior economist at Jones Lang LaSalle Bruce Pang, whose words cited by chinastocks.net, in the third trimester, the Chinese economy may be more difficult than expected, as its recovery is constrained by low demand. It barely showed any growth in the second quarter.