China’s official manufacturing PMI fell from 50.3 to 49.2 in July, returning to contraction territory. The non-manufacturing PMI also dropped to 49.
The problem is not production capacity; it’s demand.
New orders are weak, domestic consumption is fragile, and the real estate sector is still under pressure. At the same time, production linked to semiconductors, electric vehicles, and AI-connected technologies continues to grow.
This divergence in China could affect a wide range—from copper to oil, from Germany’s exports to emerging country markets.
Not investment advice
For informational purposes
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