Group 1 - In July, the manufacturing Purchasing Managers' Index (PMI) was 49.3%, a decrease of 0.4 percentage points month-on-month, indicating a slight contraction in manufacturing activity [1] - The non-manufacturing business activity index and the composite PMI output index were 50.1% and 50.2%, respectively, both showing a month-on-month decline of 0.4 and 0.5 percentage points, but remaining above the critical point, suggesting overall economic expansion [1] - The production index and new orders index were 50.5% and 49.4%, respectively, with declines of 0.5 and 0.8 percentage points, indicating continued expansion in manufacturing production but a slowdown in market demand [1][2] Group 2 - Extreme weather conditions in July, including heatwaves and floods, hindered outdoor construction and daily life, impacting market demand [2] - The main raw materials purchasing price index rose to 51.5%, and the factory price index was 48.3%, reflecting a month-on-month increase of 3.1 and 2.1 percentage points, respectively, indicating an improvement in overall market price levels [2] - The equipment manufacturing PMI and high-tech manufacturing PMI were 50.3% and 50.6%, respectively, both above the critical point, while the consumer goods industry PMI was 49.5%, showing a month-on-month decline of 0.9 percentage points [2] Group 3 - The production and business activity expectation index was 52.6%, an increase of 0.6 percentage points month-on-month, indicating enhanced confidence among manufacturing enterprises regarding market development [3] - The service industry business activity index was 50.0%, slightly down by 0.1 percentage points, but still within the expansion range, indicating overall stability [3] - The summer holiday effect positively impacted sectors related to consumer travel and spending, with indices for railway transport, air transport, postal services, and cultural and sports entertainment exceeding 60.0%, indicating rapid growth in business volume [3]

Core Insights - The China Electricity Council (CEC) held a press conference on the "2025 National Power Supply and Demand Situation Analysis and Forecast Report," indicating a rapid increase in electricity load across multiple regions in July, with the highest load reaching 1.508 billion kilowatts on July 17 [1][2] Group 1: Electricity Load Trends - The electricity load has been consistently reaching new highs, with significant increases noted since late June, particularly in July, where the load reached 1.508 billion kilowatts, an increase of 0.057 billion kilowatts compared to the previous year's maximum load [2] - If summer temperatures reach historical highs, the maximum electricity load could potentially reach between 1.52 billion to 1.57 billion kilowatts [1][3] Group 2: Driving Factors for Electricity Demand - The increase in electricity demand is attributed not only to temperature factors but also to government policies aimed at promoting major strategic implementations and enhancing safety capabilities in key areas, which have stimulated sales in related goods and manufacturing investments [2] - The manufacturing sector, particularly in equipment and consumer goods, has shown strong resilience, with significant year-on-year growth in electricity consumption across various industries, including automotive and general equipment manufacturing [3] Group 3: New Energy and Technology Impact - New energy and technology sectors are driving substantial growth in electricity consumption, with internet data services seeing a 44.6% year-on-year increase in electricity usage, and software and IT services growing by 17.4% [3] - The automotive manufacturing sector, particularly in new energy vehicles, has also contributed to the increase, with a 13.0% rise in electricity consumption [3]

Economic Indicators - The manufacturing PMI for July is at 49.3%, a decrease of 0.4 percentage points from June, indicating a weak recovery and potential peak in economic growth momentum[1] - The new orders index fell to 49.4%, down 0.8 percentage points from the previous month, entering a contraction zone, suggesting tightening market demand[13] - The comprehensive PMI output index is at 50.2%, down 0.5 percentage points from last month, still indicating overall expansion in production activities[27] Sector Performance - The production index for July is at 50.5%, a decline of 0.5 percentage points, but remains in the expansion zone for three consecutive months[3] - Equipment manufacturing PMI is at 50.3% and high-tech manufacturing PMI is at 50.6%, both above the critical point, indicating continued expansion in these sectors[1] - The consumer goods industry PMI is at 49.5%, down 0.9 percentage points, while the high-energy-consuming industries PMI is at 48.0%, up 0.2 percentage points, showing mixed performance across sectors[1] External Trade and Demand - The new export orders index is at 47.1%, down 0.6 percentage points, reflecting cautious attitudes among foreign trade enterprises due to uncertainties in tariffs[16] - Port cargo throughput in July increased by 10.9% year-on-year, indicating some resilience in actual export volumes despite potential sustainability issues[17] Price Trends - The main raw material purchase price index rose to 51.5%, up 3.1 percentage points, marking the first rise above the critical point since March, indicating improved market price levels[18] - The factory price index is at 48.3%, up 2.1 percentage points, suggesting a slight recovery in manufacturing prices[18]

Core Insights - The manufacturing PMI for July 2025 is reported at 49.3%, indicating a decline of 0.4 percentage points from the previous month, reflecting a downturn in manufacturing activity [1] Manufacturing PMI Breakdown - The production index stands at 50.5%, down 0.5 percentage points, while the new orders index is at 49.4%, down 0.8 percentage points, indicating continued expansion in production but a slowdown in market demand [2] - The raw material inventory index is at 47.7%, down 0.3 percentage points, and the employment index is at 48.0%, up 0.1 percentage points, suggesting challenges in workforce levels [1][2] - The supplier delivery time index is at 50.3%, up 0.1 percentage points, indicating stable supply chain conditions [1] Price Index and Market Dynamics - The price index has risen, with the main raw material purchase price index at 51.5%, up 3.1 percentage points, and the factory price index at 48.3%, up 2.1 percentage points, indicating an overall improvement in manufacturing market prices [2] Large Enterprises and New Growth Drivers - Large enterprises maintain expansion with a PMI of 50.3%, down 0.9 percentage points, and their production and new orders indices at 52.1% and 50.7%, respectively, indicating a stable operational environment [2] - Emerging sectors such as equipment manufacturing and high-tech manufacturing show PMIs of 50.3% and 50.6%, respectively, both above the critical point, indicating ongoing growth in these areas [2] Market Expectations and Future Outlook - The production and business activity expectation index is at 52.6%, up 0.6 percentage points, reflecting increased confidence among manufacturing enterprises regarding market developments [2] - Analysts suggest that despite a decline in domestic demand, future policies aimed at boosting consumption and investment may lead to a recovery in economic activity [3] - The focus on new pillar industries and the stabilization of the capital market are expected to support the equity market, particularly in technology and consumer sectors [3]

Group 1: PMI Trends - In July, the manufacturing PMI index fell by 0.4 percentage points to 49.3%, marking the fourth consecutive month below the threshold and the lowest in nearly six months[1] - The new orders index dropped significantly by 0.8 percentage points to 49.4%, with the consumer goods sector declining by 0.9 percentage points to 49.5% due to ongoing downturns in the real estate market[1] - The production index also decreased by 0.5 percentage points to 50.5%, influenced by extreme weather and weakened internal and external demand[1] Group 2: Export and Inventory Insights - The new export orders index fell by 0.6 percentage points to 47.1%, with high-tech and equipment manufacturing sectors declining by 0.3 and 1.1 percentage points respectively, reflecting short-term impacts from delayed tariff negotiations[1] - The finished goods inventory index dropped by 0.7 percentage points to 47.4%, indicating a cautious outlook among enterprises amid weak demand[2] - Industrial enterprises are expected to maintain a moderate pace of inventory replenishment due to ongoing challenges in the real estate market and limited traditional infrastructure investment[2] Group 3: Service and Construction Sector Performance - The service sector PMI slightly decreased by 0.1 percentage points to 50.0%, remaining near the threshold, indicating stable growth in service consumption[2] - The construction sector PMI fell significantly by 2.2 percentage points to 50.6%, impacted by extreme weather conditions and limited traditional infrastructure investment due to debt concerns[2] - The political bureau meeting emphasized the importance of expanding consumer goods consumption, but did not extend the previous policies aimed at enhancing durable goods subsidies, suggesting a need for ongoing observation[3]

Core Viewpoint - The "anti-involution" policy has boosted prices, but supply and demand performance is counterintuitive [2][7][67] - The manufacturing PMI decreased by 0.4 percentage points to 49.3%, exceeding the average decline since 2017 [2][67] - The increase in commodity prices is reflected in the raw material purchase price index (+3.1 percentage points to 51.5%) and the factory price index (+2.1 percentage points to 48.3%) [2][67] Manufacturing Sector - The manufacturing PMI has marginally declined, with production and new order indices both decreasing [4][70] - The production index fell by 0.5 percentage points to 50.5%, while the new order index dropped by 0.8 percentage points to 49.4% [4][70] - The new export order index decreased by 0.6 percentage points to 47.1%, indicating a slowdown in market demand [4][70][35] Key Industries - High-energy-consuming industries are showing production strength despite price increases, with the steel industry PMI rising by 4.6 percentage points to return to the expansion zone [3][18][69] - The equipment manufacturing and consumer goods industries saw PMIs decline by 1.1 and 0.9 percentage points to 50.3% and 49.5%, respectively [3][18][69] - Investment demand weakened significantly, contrasting with the strong production performance in high-energy-consuming sectors [21][69] Non-Manufacturing Sector - The non-manufacturing PMI decreased by 0.4 percentage points to 50.1%, primarily due to a significant drop in the construction PMI [42][70] - The construction PMI fell by 2.2 percentage points to 50.6%, with the new order index dropping sharply by 2.2 percentage points to 42.7% [5][58][70] - The service sector PMI slightly declined, with the new order index remaining weak at 46.3% [5][46][70] Future Outlook - The political bureau meeting in July emphasized the need for further implementation of the "anti-involution" policy, focusing on the effects in downstream sectors and marginal changes in domestic demand [27][69] - The current situation indicates that the "anti-involution" policy in the upper reaches still requires further advancement, while high-energy-consuming industries are undergoing significant transformations [27][69]

Group 1: PMI Data Overview - In July, the manufacturing PMI decreased by 0.4 percentage points to 49.3%, while the non-manufacturing PMI fell by 0.4 percentage points to 50.1%[6][28] - The decline in manufacturing PMI is greater than the average drop of 0.1 percentage points since 2017[7][28] - The purchasing price index for major raw materials rose by 3.1 percentage points to 51.5%, marking the first increase above the critical point since March[7][18] Group 2: Sector Performance - The production index in July remained in the expansion zone at 50.5%, despite a 0.5 percentage point decline[2][13] - The new orders index fell into the contraction zone, decreasing by 0.8 percentage points to 49.4%[2][14] - High-energy-consuming industries, particularly the steel sector, saw a PMI increase of 4.6 percentage points, returning to the expansion zone at 48%[18][21] Group 3: Investment and Demand Trends - Investment demand weakened significantly in July, contrasting with the strong performance of high-energy-consuming industries[21] - The construction PMI dropped by 2.2 percentage points to 50.6%, with new orders falling sharply to 42.7%[21][42] - The business activity expectation index for the construction sector decreased by 2.3 percentage points to 51.6%[21] Group 4: Future Outlook - The political bureau meeting in July emphasized the need for further implementation of "anti-involution" policies, particularly focusing on mid- and downstream sectors[23] - The report suggests that the effectiveness of "anti-involution" policies in stimulating domestic demand will be crucial for future manufacturing performance[23]

Core Viewpoint - The manufacturing Purchasing Managers' Index (PMI) in China decreased to 49.3% in July, indicating a slight contraction in manufacturing activity due to seasonal factors and adverse weather conditions [1][3]. Group 1: Manufacturing PMI Overview - The manufacturing PMI fell by 0.4 percentage points from the previous month, reflecting a decline in manufacturing sentiment after two months of recovery [1]. - The new orders index for manufacturing dropped into the contraction zone, signaling weaker demand [3]. Group 2: Production and Price Indices - Despite the decline in new orders, the production index remained in the expansion zone at 50.5%, marking three consecutive months of growth [3]. - The raw material purchase price index rose to 51.5%, increasing by 3.1 percentage points, indicating improved price levels in the manufacturing sector [5]. - The equipment manufacturing PMI was at 50.3%, down 1.1 percentage points but still in the expansion zone, while the high-tech manufacturing PMI was at 50.6%, down 0.3 percentage points, maintaining expansion for six months [5]. Group 3: Economic Outlook - The PMI data suggests that despite short-term fluctuations, production remains in the expansion zone, with optimism among manufacturers regarding future business activities, as indicated by a production expectation index of 52.6%, which increased by 0.6 percentage points [7].

Core Viewpoint - The manufacturing Purchasing Managers' Index (PMI) in China for July 2025 is reported at 49.3%, indicating a decline of 0.4 percentage points from the previous month, reflecting a downturn in manufacturing activity [1][4]. Manufacturing PMI Overview - The manufacturing PMI has decreased to 49.3%, with production index at 50.5% and new orders index at 49.4%, both showing declines from the previous month [1][4]. - The raw materials inventory index is at 47.7%, indicating a continued reduction in major raw material stocks, while the employment index has slightly increased to 48% [4][5]. - The supplier delivery time index is at 50.3%, suggesting that the delivery times for raw materials are improving [4]. Sector Performance - Key sectors such as railway, shipbuilding, aerospace, and computer communication electronics are showing active production and new orders, while sectors like chemical raw materials and non-metallic mineral products are underperforming [5][6]. - The equipment manufacturing and high-tech manufacturing sectors have PMIs of 50.3% and 50.6%, respectively, remaining above the critical point, indicating ongoing expansion [6][7]. Economic Outlook - There is potential for demand recovery, with expectations that economic stabilization policies may be implemented to boost PMI [5][6]. - The price index for major raw materials has risen, with the purchasing price index at 51.5%, marking the first increase above the critical point since March [6][7]. Inventory and Business Confidence - The finished goods inventory index has decreased to 47.4%, reflecting cautious inventory adjustments by enterprises [7]. - Business confidence is improving, with the production and business activity expectation index rising to 52.6%, indicating a more optimistic outlook among manufacturers [7].

Core Viewpoint - The manufacturing PMI in July showed a short-term fluctuation, dropping to 49.3%, while the overall economic output remains in an expansion phase, supported by non-manufacturing indices above 50% [1][2]. Manufacturing Sector - In July, the manufacturing PMI was 49.3%, a decrease of 0.4 percentage points from the previous month, influenced by seasonal production slowdowns and extreme weather conditions [1]. - The new orders index for manufacturing was 49.4%, down 0.8 percentage points, and the new export orders index was 47.1%, down 0.6 percentage points [1]. - Despite weak market demand, the production index was at 50.5%, indicating continued expansion for the third consecutive month [1]. Key Industries - The equipment manufacturing PMI was 50.3%, down 1.1 percentage points but still in the expansion zone; high-tech manufacturing PMI was 50.6%, maintaining expansion for six months [2]. - Large enterprises showed stable expansion with a PMI of 50.3%, while medium-sized enterprises improved to 49.5%, and small enterprises decreased to 46.4% [2]. Price Indices - The raw material purchase price index for manufacturing was 51.5%, up 3.1 percentage points, returning to the expansion zone after four months below 50% [2]. - The factory price index was 48.3%, up 2.1 percentage points, marking the second-highest point this year [2]. Market Expectations - The manufacturing production and operation activity expectation index rose to 52.6%, indicating increased confidence among manufacturers [3]. - The non-manufacturing business activity index was 50.1%, with the service sector at 50% and construction at 50.6%, both remaining in the expansion zone [3]. - The non-manufacturing business activity expectation index was 55.8%, reflecting optimism among most non-manufacturing enterprises [3]. Future Outlook - It is anticipated that construction activities will rebound as the rainy season ends, supported by policies aimed at boosting investment and consumption [4].