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Caixin China manufacturing PMI falls to two-year low

(Xinhua) Updated: 2015-08-03 13:55

BEIJING - China's manufacturing activity retreated in July, hitting a two-year low with less output and fewer new orders, according to a private survey on Monday.

The Caixin General China Manufacturing Purchasing Managers' Index (PMI) fell from 49.4 in June to 47.8 in July, the lowest since July 2013.

A reading above 50 indicates expansion, while a reading below that represents contraction.

The survey said July's reduction in manufacturing output was the sharpest since November 2011 because of weaker market conditions and a downturn in demand.

Meanwhile, fewer new orders underpinned a renewed contraction of purchasing activity last month, leaving the rate of reduction in new orders the sharpest seen in the past three-and-a-half years.

This is the first time the index has been released since it was renamed after Caixin Media Co, Ltd replaced HSBC as sponsor of Markit's China PMI. HSBC held the sponsorship for five years, and CLSA sponsored the Markit China PMI prior to HSBC.

China's official PMI posted at 50.0 in July, down from 50.2 in June, according to data released Saturday by the National Bureau of Statistics.

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