China's National Bureau of Statistics announced that the manufacturing PMI for July dropped by 0.4 ppts from June to 49.3, indicating a decline in manufacturing activity, according to China Galaxy Securities. The business activity index came in at 50.6% for the construction industry (previously 52.8%) and at 50.0% for the service industry business (previously 50.1%). In the broker's opinion, extreme weather affected production intensity, and demand was in stage-by-stage adjustment. The production index/ new orders index/ new export orders stood at 50.5% (previously 51%)/ 49.4% (previously 50.2%)/ 47.1% (previously 47.7%).Related NewsLatest US-CN Trade Talks Set to Begin Soon; Trump: Both Countries Very Close to DealIn July, various regions across China suffered from extreme weather conditions such as heavy rain, heatwaves, and typhoons, impacting outdoor construction intensity. Historically, the record for July tended to decline by an average of 1.02 ppts from June. That said, production above the boom-bust line still indicated solid resilience on the supply side.