After a brief June respite in the wake of Shanghai’s cautious reopening, China’s economy is back in the wringer.
The latest bad news came over the weekend: China’s official manufacturing purchasing managers index fell back into negative growth territory in July, just a month after recovering to above the 50-point mark separating expansion from contraction. A separate private survey from financial media group Caixin showed factory activity still growing, but just barely. And property sales from China’s top 100 developers fell 28.6% from June, completely erasing an early summer sales bump. Meanwhile, cash-strapped property developers are struggling to build apartments and owners with mortgages are threatening to stop payment.