Beijing’s factory activity contracts unexpectedly in July amid Covid

China’s economy nearly contracted in the second quarter amid widespread lockdowns but top leaders recently signalled that a strict zero-Covid policy would remain a top priority.

BEIJING: China’s factory activity contracted unexpectedly in July after bouncing back from Covid-19 lockdowns in the prior month, as fresh virus flare-ups and a darkening global outlook weighed on demand, an official survey has showed.

The official manufacturing purchasing managers’ Index (PMI) stood at 49 in July, down from 50.2 in June, the National Bureau of Statistics said.