China's Weak PMI Points to Needed Stimulus

Dow Jones
07/31

0429 GMT - China's July PMI data point to a sharper-than-expected slowdown in growth due to the global tech rout, says Vicky Xiao, economist at ANZ. The manufacturing PMI fell back into contraction for the first time since March 2026 with the weakness was concentrated on the demand side, with drastic decreases in both new orders and new export orders, she says. The data point to a rising likelihood for policy stimulus with a potential window in September. Policy options might include deploying about CNY2 trillion of unused local government bond quotas and a cut to required reserve ratio, she adds.

 

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