0442 GMT - China official composite PMI slumped to 49.3 in July, its lowest level since the pandemic ended in 2022. While this is worrying, there are reasons not to panic, says Julian Evans-Pritchard, head of China economics at Capital Economics. First of all, the unofficial PMIs due next week may come in stronger. That was certainly the case during the first half of the year, he says. Second, the indices tracking firms' expectations for future output held up well in July. This implies that firms believe the latest deterioration in activity will prove short-lived, he adds.
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