Manufacturing activity lowest in five months
Factory gate prices worst in 13 months
Nonmanufacturing activity expands at slower pace

BEIJING, July 31 Reuters China39;s manufacturing activity slipped to a fivemonth nadir in July as factories grappled with falling new orders and low prices, an official survey showed on Wednesday, pointing to a grinding second half for the world39;s production powerhouse.

The National Bureau of Statistics NBS purchasing managers39; index PMI contracted for a third month, easing to 49.4 from 49.5 in June, below the 50mark separating growth from contraction, but just ahead of a median forecast of 49.3 in a Reuters poll.

Sentiment remains gloomy among manufacturers as domestic demand is increasingly under siege and external pressures from trade tensions loom large for China39;s 18.6 trillion economy, which grew more slowly than expected in the second quarter.

Producers reported factory gate prices were at their worst in 13 months, while employment stayed in negative territory, with its subindex last expanding in February 2023 and pointing to a somnolent domestic economy and China39;s increasing reliance on exports for momentum.

Solace could not be found in July39;s new export orders subindex, which contracted for a third month and suggested factory owners had continued to slash prices to propel outbound shipments.

Furthermore, hopes that strong exports would spark a broader economic recovery were dashed by extreme weather conditions,…