The Purchasing Manager’s Index (PMI) of July recently released by China Federation of Logistics and Purchasing (CFLP) was 51.2%, down 0.9 percentage point from the previous month.

The PMI is a comprehensive index, made up of 5 main weighted diffusion indexes in accordance with the international practice. Generally speaking, that PMI is above 50% reflects economic expansion in general; while below 50% reflects economic recession.

In terms of 11 sub-items index, PMI still saw a momentum of decline but the decline degree slightly shrank. Compared with the previous month, only the employee index rose, up 1.6 percentage points while the rest index all declined in various degrees but the decline degree was slight, most of which are about 1 percentage point. Among them, production index dropped significantly to 3.1 percentage points.