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China weak exports reduce factory activity

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Manufacturing decelerated in China during July, as exports and domestic demand weakened, a survey showed.

The China Federation of Logistics & Purchasing said that its monthly purchasing managers’ index declined to 51.2 from 51.5 in June on a 100-point scale.
Measures for output and new orders declined. The export index was unchanged at 49.8 on the same 50-point scale.

Forecasters expected Chinese industrial activity to weaken since controls on bank lending were tightened last year to curb surging debt.

Exports have shrunk as a share of the economy in China, and contribute less than 1 percent of annual economic growth.