CaixinSP Global July manufacturing PMI at 49.8 vs 51.8 in June
CaixinSP Global PMI misses analysts39; expectations of 51.5
Official manufacturing PMI on Wednesday also showed decline

BEIJING, Aug 1 Reuters China39;s sluggish manufacturing sector is poised for a cruel summer with two sentiment surveys this week pointing to a new level of gloom among factory owners struggling with poor demand, signalling risks for economic growth in the second half of 2024.

A privatesector survey of purchasing managers from 650 private and stateowned manufacturers published on Thursday found that operating conditions in the sector deteriorated for the first time in nine months as new orders tumbled.

The CaixinSP Global manufacturing Purchasing Managers39; Index PMI dropped to 49.8 in July below the 50mark separating growth from contraction from 51.8 the previous month. That was the lowest reading since October last year and missed analysts39; forecasts of 51.5.

The unexpectedly downbeat survey, which mostly tracks exportoriented firms, came on the heels of an official PMI survey covering bigger companies that also showed reduced order flows and weak prices.

The Caixin survey attributed the PMI drop to the first fall in new orders in a year, with survey respondents blaming the decline on subdued demand and client budget reductions.

Subsector data indicated the drop in new orders predominantly affected investment and intermediate goods, while the consumer goods sector saw slight…