Official PMIs come from the China National Bureau of Statistics and the China Federation of Logistics and Purchasing.

For July:

Manufacturing 49.0, its lowest in 3 months and back into contraction

• expected 50.3 and prior 50.2
• China’s NBS attributes the result, according to statements reported in State media (Xinhua), to traditional production off-peak period, insufficient market demand, and the weakened performances of energy-intensive industries.

Non-manufacturing 53.8

• expected 53.9, prior 54.7

The 'Composite’ of the two hit 52.5, down from June’s54.1.

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This is not the first time recently we’ve heard of „insufficient demand” as a reason for the poor performance of the country’s economic indicators. Ongoing outbreaks and associated restrictions have played, and continue to play, a role in this.

On a brighter note the non-manufacturing PMI indicator (this shows the performance of services and construction sectors), while down from June, recorded a solid expansion.

At the margin these numbers are a negative input to China-proxy trades such as AUD.