China's manufacturing purchasing managers' index fell to 49.2 in July, down 1.1 percentage points from the previous month, as high base effects from earlier rapid growth and the traditional off-season for some industries weighed on activity, according to data released by the National Bureau of Statistics (NBS) on July 31.

Equipment manufacturing and high-tech manufacturing continued to support growth, with PMI readings of 51.4 and 53.3 respectively, well above the overall manufacturing level. Consumer goods and high-energy-consuming industries saw PMI readings of 47.8 and 47.0, down 2.4 and 0.1 percentage points from the previous month.

Some equipment manufacturing sectors have experienced rapid growth in both production and demand. The production index and new orders index for manufacturing stood at 49.9 and 48.5 in July, down 1.5 and 2.7 percentage points month on month. General equipment and computer, communication and electronic equipment industries saw both indices above 53.0, while non-metallic mineral products, ferrous metal smelting and rolling, and automobile industries remained below the threshold.

The purchasing price index for major raw materials and the ex-factory price index stood at 53.2 and 47.8 respectively, falling for a fourth consecutive month amid commodity price fluctuations. The two price indices for the non-ferrous metal smelting and rolling industry both fell below 45.0. The purchase volume index dropped to 49.4 as enterprises weakened procurement intentions.

The manufacturing production and business activity expectation index stood at 54.1, with enterprises remaining generally optimistic. Food, beverage, refined tea, railway, shipbuilding, aerospace and other equipment industries saw the index rise above 60.0.

The non-manufacturing business activity index and the composite PMI output index stood at 49.0 and 49.3 respectively in July, down 1.2 and 1.3 percentage points month on month. 

The services business activity index stood at 49.3 in July, down 1.1 percentage points month on month. Air transport, accommodation, culture, sports and entertainment industries rebounded notably on summer holiday consumption, while wholesale and monetary financial services saw larger declines. Capital market services and real estate remained below the threshold. The services business activity expectation index stood at 56.0, flat from the previous month.

The construction business activity index fell to 47.0 in July, down 2.0 percentage points month on month, as high temperatures, heavy rainfall and flooding in some regions slowed construction progress. The construction business activity expectation index rose 0.7 percentage points to 51.8.

China's composite PMI output index stood at 49.3% in July, down 1.3 percentage points from the previous month, indicating a slowdown in business activity across the country's enterprises. The manufacturing production index and non-manufacturing business activity index that constitute the composite index stood at 49.9 and 49.0 respectively.