The data highlighted the challenges policymakers faced in keeping inflation and monetary policy steady, as they prepared for a potential global economic slowdown in the second quarter.
Japan, South Korea, Taiwan and Vietnam saw manufacturing deals in July, the survey showed, reflecting China’s strong interest in the region.
The data highlighted the challenges policymakers faced in keeping inflation and monetary policy steady, as they prepared for a potential global economic slowdown in the second quarter.
Japan, South Korea, Taiwan and Vietnam saw manufacturing deals in July, the survey showed, reflecting China’s strong interest in the region.
The Caixin/S&P Global China Manufacturing Purchasing Managers’ Index (PMI) fell to 49.2 in July from 50.5 in July, missing analyst estimates of 50.3 and marking the first fall in activity since April.
The 50-point index distinguishes between growth and decline.
The data, which was shared with the government's official PMI on Monday, poses a challenge for policymakers to revive China's post-Covid recovery.
"The manufacturing PMI remained in declining territory across much of Asia last month as data showed further weakness ahead," said Shivan Tandon, Asia analyst at Capital Economics.
"Declining new orders, a weak employment outlook and rising commodity prices reflect a slowdown in manufacturing activity in recent months."
Japan's Au Jibun Bank's latest PMI fell to 79.6 from 49.8 in July amid domestic and international weakness. South Korea's July PMI rose to 49.4 from July's 47.8, but fell short of the 50-point mark that separates growth from contraction, S&P Global Research said.
As a result of the survey, Taiwan's manufacturing PMI fell to 44.1 from 44.8 in July, while Vietnam's index rose to 48.7 from 46.2.
Asia is one of the few bright spots in the global economy, but China's slowdown makes its future uncertain.
In its revised forecast published in July, the International Monetary Fund (IMF) predicted that Asia's economic growth would increase from 4.5 percent in 2022 to 5.3 percent this year.
China's economy is expected to grow by 5.2% this year, after growing by 3.0% in 2022.
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