Shafaqna English– In July, China’s manufacturing sector unexpectedly contracted, marking a reversal from previous months. The primary driver behind this downturn was a notable decline in new orders, which intensified existing anxieties about the nation’s decelerating economic trajectory, persistently weak domestic consumption, and mounting cost pressures faced by producers.
To some extent, robust performance in manufacturing and goods exports during the first half of the year had acted as a buffer, shielding China’s economy from the full impact of oil price shocks originating in the Middle East.
These export strengths also helped counterbalance persistent weaknesses in the real estate sector and labor market. However, official data released earlier this month indicated that overall growth had already begun to lose its forward momentum.