The Kobeissi Letter(@KobeissiLetter):China’s economy is losing momentum: China's manufacturing PMI fell -1.1 points in July, to 49.2, one of the lowest readings since 2023. This also marks the first reading below 50 since February, signaling contraction in the sector. At the same time, non-manufacturing PMI, measuring construction and services activity, declined -1.2 points, to 49.0, the lowest since December 2022. Construction PMI alone dropped 2.0 points, to 47.0 points, the lowest since the 2020 pandemic. On top of this, China’s GDP growth slowed to just +4.3% YoY in Q2 2026, the weakest expansion since Q4 2022. China’s slowdown is spreading across its economy.

2026.08.02 00:12

China’s economy is losing momentum: China's manufacturing PMI fell -1.1 points in July, to 49.2, one of the lowest readings since 2023. This also marks the first reading below 50 since February, signaling contraction in the sector. At the same time, non-manufacturing PMI, measuring construction and services activity, declined -1.2 points, to 49.0, the lowest since December 2022. Construction PMI alone dropped 2.0 points, to 47.0 points, the lowest since the 2020 pandemic. On top of this, China’s GDP growth slowed to just +4.3% YoY in Q2 2026, the weakest expansion since Q4 2022. China’s slowdown is spreading across its economy.