China's manufacturing activity contracted in July, the monthly Purchasing Managers' Index says

A closely watched measure of Chinese manufacturing activity remained negative in July as concern persists about the state of the world’s second largest economy. The National Bureau of Statistics said Wednesday that the Purchasing Managers’ Index slipped 0.1 points to 49.4, It was the third straight monthly reading below 50, a level that indicates a contraction of manufacturing activity. A parallel purchasing managers’ index for the service sector also fell 0.3 points but remained in positive territory at 50.2. A top body of China’s ruling Communist Party warned Tuesday that the coming months will be tough for the economy.