Recession Hits ChinaWatch
BEIJING (Sputnik) — China's industrial PMI performed below expectations and fell to 49.9 in July from the June level of 50, which is the watershed between growth and contraction, according to the statistics bureau.
A US 100-dollar banknote with a portrait of Benjamin Franklin and Chinese 100-yuan banknotes with portrait of late Chinese Chairman Mao Zedong are seen in the picture illustration in Beijing, China
July figures are the lowest result since February. The index, which measures private sector company variables such as output, new orders, prices and employment, fell from 49.4 to 49.0 between January and February before rebounding. In January, the index reached its lowest point since August 2012 after sliding from December's 49.7.
In contrast, the country's services PMI jumped from 53.7 to 53.9 between June and July.
China's economy has recently been experienced significant turmoil, with growth rates at record lows, an increasingly volatile stock market and the yuan sliding against other currencies. In January, China reported its 2015 GDP increase to be the lowest in over 20 years.