View of the production line of a water treatment equipment manufacturer in Qingzhou, Shandong province. WANG JILIN/FOR CHINA DAILY
China's manufacturing sector proved resilient in July, with high-tech industries remaining firmly in expansion mode, even as overall factory activity saw a mild contraction amid a high comparison base and seasonal factors, official data showed.
As the economy transitions from old growth drivers to new ones, factory activity may rebound in the near term but remain in contraction territory, analysts said, reinforcing expectations of broader and stronger pro-growth support in the coming months.
With some countercyclical measures already in place and further policy space available, policymakers are well positioned to address weak domestic demand and cushion the economy against external uncertainty for the remainder of the year, they added.
The official purchasing managers' index for the manufacturing sector fell to 49.2 in July from 50.3 in June, slipping below the 50-point mark that separates expansion from contraction, data from the National Bureau of Statistics showed on Friday.
